Largan Precision Expands Into AI With TSMC CPO Collaboration, Shares Close In on NT$3,000

Largan Precision, best known as a supplier of smartphone camera lenses, is expanding into silicon photonics and co-packaged optics, or CPO. The technology integrates optical components more closely with computing chips to reduce power consumption and latency in high-speed data transmission. The move could give Largan a foothold in Taiwan Semiconductor Manufacturing Co.’s advanced-packaging ecosystem and Nvidia’s next-generation optical communications supply chain as AI data centers demand greater bandwidth.

Largan plans to spend NT$3.08 billion ($3.08 billion in local currency terms) on factory land in Taichung to accelerate construction of CPO capacity. A pilot production line is scheduled to be ready in the third quarter of 2026, with mass production and revenue contribution possible as early as mid-2027. Investors welcomed the diversification into optoelectronic semiconductors, sending Largan’s shares to the daily limit and a record high after the plan was disclosed.

Largan Precision is seeking a new growth engine as smartphone demand matures and expansion in its core handset-lens business slows. The company is moving into co-packaged optics, or CPO, which places optical components closer to AI processors to increase data-transfer speeds while reducing power consumption. The push gives Largan an opening in TSMC’s advanced-packaging supply chain and the fast-growing market for AI computing infrastructure.

Largan accelerated the effort after TSMC questioned why the supplier had not begun shipping despite having the technical capability, prompting Chief Executive Lin En-ping to commit to a 300-day development drive. The company is combining four decades of optical-alignment expertise with internally developed automated production lines to target high-speed AI chip interconnects and semiconductor packaging. Largan has not disclosed the investment amount or a timetable for volume production and shipments.

As AI server computing capacity continues to expand, the power-consumption and distance constraints of copper connections are driving demand for through-glass via (TGV) technology and co-packaged optics (CPO). Largan Precision’s move into advanced optical interconnects could provide growth beyond smartphone lenses. TSMC is also working with partners including Innolux to validate glass substrates, as a next-generation packaging supply chain gradually takes shape.

As of July 20, Largan had announced plans to spend NT$650 million on laser equipment as an early investment in TGV manufacturing and had showcased next-generation CPO components as it targets high-speed transmission opportunities in AI data centers. The news lifted optical stocks, with Largan shares surging to NT$5,300 in intraday trading. TSMC also launched a glass-substrate validation program, moving the technology race into the implementation stage.