AUO: Optical communications business achieved breakthrough, CPO enters system-level introduction testing stage

Recently, according to media reports, AUO has made new progress in the field of optical communications. Chairman Peng Shuanglang said that the group has a relatively complete layout in terms of optical communication modules (CPO) required for AI infrastructure. It has currently carried out system-level introduction tests with international AI and optical communication manufacturers, and is expected to gradually promote commercialization within 2 to 3 years.

Peng Shuanglang pointed out that AUO has also integrated the group's internal resources such as Fucai (light source transmitter) and Dingyuan (light sensing receiver) to further improve the relevant ecological chain layout; AUO is responsible for the integration and packaging of CPO modules, gradually becoming part of the AI infrastructure supply chain.

Peng Shuanglang further pointed out that driven by AI, data centers are facing high power consumption and heat dissipation pressure, and "optical advancement and copper retreat" will become a trend. Optical communication modules are expected to play an important role in short- and medium-distance data transmission while improving energy efficiency. He emphasized that the group's technology layout is not limited to Micro LED, but also built a complete light source technology system for different transmission distances.

In terms of business transformation, AUO has been gradually transforming from a highly cyclical consumer panel supplier to a system and solution provider with display technology as its core in recent years. In addition to being used in smart watches and achieving mass production, Micro LED has also been expanded to diverse scenarios such as vehicle displays, transparent displays, and large displays.

In terms of technology path, AU Optronics Chairman Peng Shuanglang has clearly pointed out that AU Optronics is leveraging its 30 years of glass manufacturing experience and Micro LED mass transfer technology to strongly enter the short-distance transmission market of silicon photonics CPO through advanced packaging processes such as redistribution layer (RDL) and through glass via (TGV).

In terms of industrial display, AUO jointly demonstrated its complete Micro LED CPO module technology for the first time at the "2026 Touch Taiwan" exhibition in April this year with its subsidiaries Ficai and Dingyuan, covering solutions with short, medium and long transmission distances.

In terms of capital and industry synergy, the interaction between AUO and Fucai has been further strengthened. On March 6, Fucai Investment Holdings held a board meeting and announced the adoption of a reverse investment plan, intending to purchase the shares of major shareholder AU Optronics for approximately NT$1.5 billion. AUO currently holds approximately 12.68% of Fucai's shares and has one board seat. This move is regarded as an important arrangement for both parties to strengthen collaboration in high value-added fields such as optoelectronics, display and optical communications, and will also help integrate subsequent technology and market resources.