Micro LED CPO Optical Interconnection New Narrative Catalyzes Zhuocheng Holdings Surge to Daily Limit

21st Century Business Herald Reporter Deng Hao

In early March, news about Micro LED CPO potentially becoming a replacement for optical interconnects due to its energy-saving advantages continued to ferment within the industry, igniting the market.

After market close on March 12, Zhaoti Co., Ltd. revealed that the Micro LED light source chips for Micro LED optical interconnect CPO (co-packaged optics) technology have completed development and are currently in sample verification testing. During trading today, Zhaoti shares hit the daily limit, with a limit-up price of 11.94 yuan, up 10.05%.

According to TrendForce, as generative AI rises, data centers’ demand for high-speed transmission continues to grow. The copper cable solutions previously used for short-distance intra-rack transmission will face severe challenges in transmission density and energy efficiency.

From a technical perspective, the Micro LED CPO solution has lower unit transmission energy consumption, which can significantly reduce overall energy use to 5% of copper cable solutions, making it a promising energy-saving alternative for optical interconnects.

CITIC Securities also believes that “Micro LED CPO is expected to become an important solution for medium-distance optical interconnects due to its advantages in power consumption, speed, and stability.”

However, it is worth noting that the industry is still in the early stages of preparation and R&D, with core bottlenecks in light-emitting chip performance and optical system integration.

Additionally, adopting the Micro LED CPO solution may accelerate the “optical to copper transition” trend and cause structural impacts on the supply chain.

Specifically, in this scheme, the light source will be replaced by self-emitting Micro LED chips, which are modulated directly by current switching to achieve higher interconnection speeds, integration, stability, and lower power consumption.

Compared to silicon photonics CPO, which is gradually entering mass production, Micro LED chips still face many technical challenges, such as switching frequency, lifespan, latency, optical coupling and precision, and substrate materials.

CITIC Securities believes that the maturity of the Micro LED CPO solution requires joint efforts from upstream and downstream companies. Currently, some leading domestic manufacturers have begun collaborative R&D and sample delivery with downstream clients. They expect that after 2027, Micro LED CPO solutions will gradually enter the implementation stage.