Industry Sources Close to Nvidia: CPO Mass Production Not Delayed, Bottleneck is Upstream Indium Phosphide Laser Chips

According to industry sources close to Nvidia on June 23, CPO mass production has not been delayed, despite significant market divergence. The confusion stems from conflating small-batch verification and industry-wide adoption, which are distinct phases.

Multiple industry insiders identified the true constraint on CPO and high-speed optical communication products as upstream indium phosphide laser chip production capacity. Extended timelines for optical chip production lines and customer validation have become the critical bottleneck in capacity expansion.