Near-packaged optics (NPO) gains ground as the industry hedges against CPO's growing pains — analysts say volume for NPO silicon photonics products will extend until the end of the decade

SemiAnalysis 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.