On July 27th, TrendForce's latest research on the optical communications industry revealed that with NVIDIA's shipment of its new-generation Spectrum-X CPO switches to select partners and Broadcom's continued small-volume shipments of its 51.2T Bailly CPO switches, Co-Packaged Optics (CPO) technology has officially entered the mass production stage. However, the supply capacity of core components such as optical engines, silicon photonics chips, and advanced packaging will become critical factors restricting the expansion speed of CPO switch production. According to the research, the Spectrum-X CPO switch, jointly developed by NVIDIA and TSMC, utilizes the COUPE advanced packaging process and boasts a processing capacity of 400 Tb/s. Its production capacity is expected to further expand in the second half of 2026. Broadcom's 51.2T Bailly CPO switch, on the other hand, is being introduced into mass production with the assistance of partners. It reduces power consumption by up to 70% compared to traditional pluggable optical transceiver modules and has already been deployed and validated by hyperscale manufacturers. Although CPO technology can significantly reduce power consumption and enhance bandwidth density, its mass production still faces challenges such as optical engine yield and advanced packaging capacity. The optical engine requires the integration of components like lasers and modulators, with a complex manufacturing process and high yield requirements. Coupled with thermal management issues, only a few suppliers possess mass production capabilities. Meanwhile, silicon photonics wafer foundry and back-end packaging demand high precision and reliability, with a long capacity construction cycle and insufficient supply flexibility in the short term. Additionally, CPO switches have significantly increased their reliance on advanced packaging processes. However, AI chips and high-performance computing are also competing for similar packaging capacity, leading to continuous pressure on CPO supply chain resources.