GoKawiilSemiAnalysis made the case for near-packaged optics (NPO) in a three-part thread posted to X on August 10, describing the architecture as an interim solution for the industry's transition from pluggable transceivers to true co-packaged optics (CPO) and crediting it with three advantages: field-replaceable modules, a failure blast radius confined to a single socketed unit, and simpler assembly, since the optical engine is packaged separately from the switch ASIC.
Just two months ago, SemiAnalysis published a research note pushing its CPO volume expectations out to 2027 for scale-out networks and 2028 or 2029 for full-scale production, subsequently knocking 17% off Applied Optoelectronics stock and roughly 8% off Lumentum in a single session and drawing a public rebuttal from rival analysts.
NPO is the architecture that stands to gain if that pessimism proves right, with Broadcom having shown a 3.2T VCSEL-based NPO product line at OFC 2026 in March, and six connector and optics firms forming a standards group the same week to define a common socket for this class of device.
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NPO presents an interim solution under the transition from pluggable to true CPO. NPO has certain benefits over CPO that bypass current production and reliability challenge of CPO, while maintaining most of the benefits CPO provide.Pros:🟠 Better serviceability (field… pic.twitter.com/R4JQX2xeQAAugust 10, 2026
NPO vs CPO and pluggable optics
A front-panel pluggable transceiver sits 15cm to 30 cm of copper trace away from the switch ASIC, and the DSP that cleans up the signal after that journey draws 6W to 8W of a typical 800G module's 14 to 17W budget. CPO reduces that distance to millimeters by mounting the optical engine on the same package substrate as the ASIC, thereby eliminating the DSP. Per Broadcom, this enabled a 70% reduction in optics power for its co-packaged Tomahawk switches, and Nvidia's figures for a 1.6T link show per-link power falling from around 30W to 9W.
NPO splits the difference by moving the optical engine off the faceplate to sit beside the ASIC, close enough to shorten the electrical path and drop the DSP, but on its own engine substrate instead of the ASIC's package. The module mates to the board through a socket, so the engine can be pulled and replaced in the field in the same way that a pluggable can; an engine reflowed onto a CPO substrate can't. SemiAnalysis's January CPO deep dive defines NPO as an optical engine co-packaged onto a separate substrate that "remains socketable."
Linear pluggable optics (LPO), the other interim architecture in circulation, takes the opposite route by removing the DSP but leaving the optics in a standard front-panel module, cutting power to roughly seven to 8.5W per 800G port at the cost of reach and interoperability headaches, while leaving the optical engine on the faceplate rather than moving it next to the ASIC.
Serviceability and yield
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