Largan Precision, a company known primarily for smartphone camera lenses, has entered a partnership with Taiwan Semiconductor Manufacturing Co. (TSMC) to work on co-packaged optics (CPO) technology. The two firms will pursue AI opportunities in that space, according to the partnership.
Why CPO matters for AI data centers
CPO brings optical communication components directly into the same package as the compute chip. That cuts down the distance data has to travel, which can slash power use and latency. For AI data centers that handle enormous amounts of information, those gains matter. The companies say the technology could redefine how efficient those facilities are.
Largan's role is in the optical elements. TSMC brings the advanced chipmaking and packaging expertise. Together they're aiming at a piece of the AI infrastructure market that's still in its early days.
A shift from the smartphone business
Largan's core business has been camera modules for phones. That market has been Largan's bread and butter for years. But the company has been looking to diversify. The CPO partnership is a big step in that direction, moving Largan's precision optics into the data center world.
For TSMC, the partnership expands its reach into photonics, a field the company has already been investing in. The collaboration gives Largan a route into AI hardware without building its own chip plants.
What's still unclear
Neither company has announced a timeline for when CPO products from this partnership might ship. The collaboration appears to be in an early stage. That leaves open questions about when the technology would actually show up in commercial data centers.
For now, the focus is on developing the technology. Largan's shift beyond smartphones is a clear signal that it sees the AI boom as a new growth area.
