Surging demand for AI compute is driving global investment in GPUs, ASICs, and next-generation datacenter infrastructure. As conventional electronic interconnects fall short of meeting high-bandwidth, low-latency data exchange needs, silicon photonics (SiPh) and co-packaged optics (CPO) are emerging as foundational technologies for next-generation AI system performance.

Benefiting from a rapid recovery in memory market demand during the first half of 2025, memory packaging and testing companies are sharing in the gains. Although the US 90-day tariff exemption period is about to expire, increasing uncertainties around order visibility starting from the third quarter are expected to make customers adopt more conservative stocking strategies.

In recent interviews, Nvidia CEO Jensen Huang has repeatedly invoked the names “China” and “Huawei,” sounding an increasingly urgent alarm about the pace of China’s AI progress. If anyone thinks a single move can halt China’s AI development, that is pure ignorance, Huang warned in a recent conversation with reporters.