The co-packaged optics (CPO) sector has hit a double milestone this week. First, NVIDIA (NASDAQ: NVDA) announced full-scale production of its Spectrum-X Ethernet silicon photonics switch, delivering on its promise of a "world-first mass-produced CPO switch."
Hot on its heels, SK hynix (KS: 000660) noted that CPO is critical for scaling system-level HBM innovation, as next-generation AI infrastructure will extend optical interconnects to memory interfaces. Within just seven days, CPO has vaulted from "concept" to "product" and now onto "next-gen architecture blueprints."
On the A-share front, Zhongji Innolight Co.,Ltd. (SZ: 300308), Eoptolink Technology Inc.,Ltd. (SZ: 300502), and Suzhou Tfc Optical Communication Co.,Ltd. (SZ: 300394) are drawing heavy attention, with interest also rising in the high-exposure ChiNext AI ETF Huabao (159363). These two landmark events have pushed CPO from "future story" to "industry frontline." This article breaks down the CPO supply chain opportunity in five layers.
Unpacking the Five-Layer Opportunity
Layer One: NVIDIA's Supply Chain Partners — High Certainty
This tier arguably offers the most certainty, as it's the only "golden layer" currently backed by volume orders. With NVIDIA turning CPO switches from blueprints into products, the supply chain division of labor is now clear. Suzhou Tfc Optical Communication Co.,Ltd. (SZ: 300394) is a named CPO optical component supplier to NVIDIA, providing the strongest earnings support across the entire chain and representing the highest-certainty segment in CPO today.
Layer Two: Optical Module/Engine Leaders — The Arena of Identity Shift
Optical module makers like Zhongji Innolight Co.,Ltd. (SZ: 300308) and Eoptolink Technology Inc.,Ltd. (SZ: 300502) still derive their main revenue from 800G/1.6T pluggable modules, but their real battleground lies in the CPO-era "identity shift"—moving from selling modules to selling optical engines and system-level packaging solutions. Zhongji Innolight Co.,Ltd. (SZ: 300308), the global optical module leader, has shipped 6T modules at scale (with a rising silicon photonics share), holds 3.2T R&D capability, and is strategically positioning in next-gen optical interconnect technologies like NPO, CPO, and OCS. Eoptolink Technology Inc.,Ltd. (SZ: 300502), a core global high-speed module player, delivers 6T/800G as its primary products, has made silicon photonics a mainstream approach, and holds technical reserves and product layouts in frontier areas including CPO, NPO, OCS, and XPO.
Layer Three: Optical Chips and Materials — Highest Technical Density
CPO sharply increases demand for high-speed lasers (such as high-power CW lasers), and the substrates for high-end optical chips are almost entirely dependent on indium phosphide (InP). This is the segment with the highest technical density and the most fragile supply. CW lasers are the core of CPO's external light source, and domestic high-speed laser chip IDM leaders are poised to become the "only seedling" in the CPO light source supply chain. Additionally, China controls roughly 70% of global refined indium production; combined with export controls, supply-demand tightness in this link could become a long-term theme.
Layer Four: Optical Components and Connectors — Tangible Incremental Growth
CPO places optical engines right next to chips, creating real incremental demand for high-density fiber connections and precision passive components. T&S Communications Co.,Ltd. (SZ: 300570) produces MPO/MTP connectors and FAU fiber array units—essential parts for high-density data center interconnects and CPO optical engine coupling—and is a key supplier of high-end MPO to Corning, indirectly entering NVIDIA's CPO supply chain. Advanced Fiber Resources(Zhuhai),Ltd. (SZ: 300620), a maker of fiber laser components and optical communication devices, leads in thin-film lithium niobate modulator mass production domestically and is developing CPO application components like WDM modules and FAU fiber arrays.
Layer Five: Equipment, Packaging, and Domestic Switches — Narrative and Expectations
Domestic players are largely in the technology-tracking and solution pre-research phase. CPO switches demand entirely new approaches to silicon photonics chips, light source packaging, and thermal management; supply chain maturity and process breakthroughs will still take time, with large-scale ramp-up expected around 2027-2028. Ruijie Networks Co.,Ltd. (SZ: 301165), a leading domestic network equipment maker (top three in Ethernet switches in China), has launched a 2T CPO switch commercial solution, self-developed LPO optical modules, and expects CPO to scale after process maturity in 2027-2028.
Related Product Focus
With optical interconnect technologies like CPO officially entering commercial deployment, 2026 will be a key inflection point for the industry—traditional pluggable modules are still ramping up while new CPO products simultaneously enter mass production, putting the sector on a "dual-line growth" path. The value weight of optical interconnects in AI computing clusters is likely to keep rising, making the high-exposure "optics" theme worthy of close attention.
For positioning, the ChiNext AI ETF Huabao (159363) focuses on optical module and CPO leaders while also covering AI applications. Its benchmark index contains nearly 40% combined weight in Zhongji Innolight Co.,Ltd. (SZ: 300308), Eoptolink Technology Inc.,Ltd. (SZ: 300502), and Suzhou Tfc Optical Communication Co.,Ltd. (SZ: 300394), making it a core AI computing flag bearer. It has averaged over 1.1 billion yuan in daily turnover this year, offering strong liquidity. Off-exchange feeder funds are available: Class A (023407) and Class C (023408).
Data sources: Shenzhen Stock Exchange, Shanghai Stock Exchange, Wind, Guozheng Index, etc. Constituent weights as of 2026.7.31: ChiNext AI constituents and weights include Zhongji Innolight Co.,Ltd. (SZ: 300308) (14.06%), Eoptolink Technology Inc.,Ltd. (SZ: 300502) (13.77%), Suzhou Tfc Optical Communication Co.,Ltd. (SZ: 300394) (7.38%), Advanced Fiber Resources(Zhuhai),Ltd. (SZ: 300620) (1.85%), T&S Communications Co.,Ltd. (SZ: 300570) (1.26%), and Ruijie Networks Co.,Ltd. (SZ: 301165) (1.13%).
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