Woofun AI reports that Sivers Semiconductor (SIVE) functions as a critical component supplier across all next-generation optical interconnect architectures, rather than solely serving the Co-Packaged Optics (CPO) vertical expansion segment. The company’s laser portfolio supports pluggable optical modules, CPO horizontal expansion, CPO vertical expansion, and Near-Pluggable Optics (NPO). This broad applicability is evidenced by a joint development with Jabil of a 1.6T optical transceiver utilizing continuous wave (CW) lasers. This solution effectively circumvents the capacity constraints of electro-absorption modulated lasers (EML) while reducing power consumption, a technical advantage Jabil management characterized as a significant competitive moat. Following this announcement, multiple pluggable optical module manufacturers have initiated joint development or certification processes with SIVE, leveraging its independent supply position given that most competitors lack vertical integration outside of Lumentum.

Looking toward the 2026-2027 horizon, SIVE is positioned as a core supplier for CPO horizontal expansion starting in the second half of 2026 and for CPO vertical expansion ramping up in the second half of 2027, driven by the Ayar and NVIDIA NVLink CPO ecosystem. From a supply chain perspective, SIVE maintains early design partnerships with entities such as Marvell Celestial, Lightmatter, and Lightelligence.

Furthermore, Sivers serves as a reference laser supplier at foundries like GlobalFoundries, while major manufacturers like O-Net are deploying ELS solutions based on SIVE technology to serve mega-scale Asian cloud operators. Consequently, SIVE is projected to be present in nearly all new optical interconnect architectures beginning in 2027, establishing it as a primary bottleneck target in the sector.