Musk’s Mesh Optical Acquisition Bolsters Space-Based AI Computing and Taiwan’s Silicon Photonics Supply Chain

As computing capacity at AI data centers continues to expand, data transmission between chips has become a bottleneck for performance and power consumption. Elon Musk’s acquisition of Mesh Optical Technologies is intended to integrate high-speed optical communications technology in support of SpaceX’s space-based computing plans. The deal is also expected to drive upgrades across Taiwan’s supply chains for silicon photonics and co-packaged optics (CPO) components.

Mesh Optical Technologies’ optical transceivers can transmit data at up to 1.6 Tbps, making them the acquisition’s core technology. As of July 20, 2026, reports had not disclosed the transaction value, signing date or closing date. Market attention has shifted to whether Taiwanese manufacturers can secure orders for silicon photonics, CPO components and high-speed optical modules.