What Is NPO?
NPO stands for Near-Package Optics, a board-level optoelectronic integrated interconnection solution designed for AI computing clusters and hyperscale data centers. It serves as an intermediate transitional technology between traditional pluggable optical modules and the ultimate Co-packaged Optics (CPO) solution.
A major breakthrough has arrived for industrial standards in the computing power track. Huawei has teamed up with over 20 industrial chain partners including China Mobile Research Institute and Baidu to launch the OPEN NPO initiative, establishing China’s first NPO optical interconnection MSA (Multi-Source Agreement). This initiative creates unified standards for near-package optics, accelerates the commercialization of high-speed optical interconnection technology, and addresses core bottlenecks in AI computing infrastructure. The unification of computing hardware standards will drive order growth across upstream and downstream suppliers, further lifting the industry outlook for optical interconnection.
Below is a detailed breakdown of the 10 hottest companies tied to the NPO concept:
1. Accelink Technologies
Core NPO Relevance: A leading domestic optical communication device manufacturer headquartered in Wuhan. It specializes in the R&D, manufacturing and technical services of optoelectronic components for optical communications, and participates directly in the OPEN NPO project as an independent member.
2. Huafeng Technology
Core NPO Relevance: A STAR Market-listed connector manufacturer based in Sichuan. Its core business covers R&D, production and sales of optical & electrical connectors and cable assemblies, and it is one of the founding initiators of the OPEN NPO project.
3. Huagong Tech
Core NPO Relevance: Its core business spans three major segments: intelligent manufacturing equipment powered by laser technology, optical & wireless interconnection for information communications, and sensors & laser anti-counterfeiting packaging based on microelectronics. Its subsidiary Huagong Genuine Optics takes part in the project and operates a mass production platform for high-speed optical modules.
4. Luxshare Precision
Core NPO Relevance: Specializes in the R&D and production of connectors. Its subsidiary Luxshare Technology is a founding member of OPEN NPO, with dedicated product lines for computing power connectors.
5. ZTE Corporation
Core NPO Relevance: A comprehensive ICT product and solution provider covering end-to-end design, development, manufacturing, sales and after-sales services, with three core verticals: carrier networks, enterprise business and consumer electronics. Its wholly-owned subsidiary ZTE Software participates in the project, delivering supporting communication software capabilities.
6. Unisplendour Corporation
Core NPO Relevance: Mainly engaged in information electronics and environmental protection businesses. Its core subsidiary H3C is a key participant, supplying switches, servers and other foundational computing infrastructure hardware.
7. Innolight
Core NPO Relevance: A global leader in optical modules and a core supplier within the OPEN NPO industrial chain, positioned as a primary mass producer of NPO products.
NPO Progress
- 1.6T and 3.2T NPO modules have completed sample delivery and small-batch shipments, securing the largest share of Google’s NPO orders, with full compatibility with Huawei’s unified OPEN NPO standards. Customized development is available for leading cloud and computing power clients.
Competitive Moat
- Tier-one supplier to NVIDIA, Google and Huawei. It holds a leading global market share for 800G and 1.6T high-speed optical modules. Its mature production lines can be retrofitted at low cost to manufacture new NPO products, delivering highly flexible production capacity.
8. Eoptolink
Core NPO Relevance: A top-tier domestic maker of high-speed optical modules, with fully mature R&D pipelines for both NPO and CPO technologies.
NPO Progress
- Second-largest supplier for Google’s NPO orders; has publicly showcased 6.4T silicon photonics NPO prototypes. Beyond optical module packaging capabilities, it has pre-developed Optical Circuit Switches (OCS) to support next-generation all-optical interconnection architectures.
Competitive Moat
- Self-developed high-speed optical chips and proprietary packaging processes. It has advanced certification progress with overseas computing power clients, and differentiated low-power LPO interconnection technology as a unique advantage.
9. Cambridge Industries Group (CIG)
Core NPO Relevance: A high-growth emerging NPO player with deep ties to top overseas hyperscale customers, boasting strong industry recognition in North American computing ecosystems. Its 800G and 1.6T high-speed modules are already mass-shipped.
NPO Progress
- Early development of high-end silicon photonic NPO optical engines (3.2T, 6.4T, 7.2T) and ELSFP external light sources, with technical achievements showcased at OFC 2026. It maintains deep technical alignment with Meta, AMD and Nokia, focusing on customized high-end NPO products for overseas markets with rapid commercialization timelines.
Competitive Moat
- Unmatched certification advantages with top global hyperscale clients; in-house silicon photonics R&D capabilities; simultaneous R&D layout across NPO, CPO and XPO technologies. Fast capacity ramp-up delivers highly elastic order growth, making it the most sensitive and high-upside stock for NPO commercial rollout.
10. Thorlabs Tianfu Communication
Core NPO Relevance: A platform manufacturer of optical components and parts. It supplies passive optical devices and precision packaging assemblies for both CPO and NPO optical modules, serving as a critical upstream supporting vendor.
NPO Progress
- It does not manufacture finished optical modules directly. Instead, it supplies optical engine components for Innolight, Eoptolink and other leading global optical module manufacturers, an indispensable upstream link for large-scale NPO mass production.
Competitive Moat
- One-stop supply capability for optical components, with deep cooperative ties to mainstream domestic and international optical module manufacturers. Technical iterations of NPO drive upgrades to component specifications, creating room for product premium pricing.
Source: Dengshu Talks Concepts
Original Link: https://mp.weixin.qq.com/s/FtNur96gjScOJkrUJLXIkg
