Largan Chairman just threw cold water on MicroLED viability for AI datacenter buildouts — citing power consumption, size, and transmission efficiency concerns. This is a big deal because MicroLED was being positioned as a next-gen optical interconnect solution for 2028+.
Meanwhile, $AMD and $NVDA are clearly scrambling to lock down CW laser supply this year. EML lasers ($LITE, $COHR) dominated 2024, but the industry was betting on MicroLED as the future architecture.
Now that bet looks shaky. $CRDO acquired Hyperlume specifically for MicroLED. $AMS Osram was collaborating with Credo. Even $MSFT was developing in-house MicroLED solutions. If Largan — a $TSM supply chain player doing FAU (foci/microlens/passive components) — is this skeptical, it's worth listening.
If MicroLED doesn't scale, the optical interconnect race tilts back toward VCSEL, CW lasers, and silicon photonics (SiPh) for CPO (co-packaged optics) applications. That's a structural tailwind for laser suppliers and SiPh players if AI datacenter buildouts keep accelerating.
TLDR: MicroLED hype may be overblown. CW laser and SiPh architectures could be the real winners in AI datacenter optical infrastructure.
Meanwhile, $AMD and $NVDA are clearly scrambling to lock down CW laser supply this year. EML lasers ($LITE, $COHR) dominated 2024, but the industry was betting on MicroLED as the future architecture.
Now that bet looks shaky. $CRDO acquired Hyperlume specifically for MicroLED. $AMS Osram was collaborating with Credo. Even $MSFT was developing in-house MicroLED solutions. If Largan — a $TSM supply chain player doing FAU (foci/microlens/passive components) — is this skeptical, it's worth listening.
If MicroLED doesn't scale, the optical interconnect race tilts back toward VCSEL, CW lasers, and silicon photonics (SiPh) for CPO (co-packaged optics) applications. That's a structural tailwind for laser suppliers and SiPh players if AI datacenter buildouts keep accelerating.
TLDR: MicroLED hype may be overblown. CW laser and SiPh architectures could be the real winners in AI datacenter optical infrastructure.