Largan Bets NT$3.08 Billion on CPO Push for AI Optics

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.

Surging demand for high-speed data transmission at artificial intelligence data centers has made co-packaged optics, or CPO, a key technology for easing computing-data bottlenecks. Largan Precision, an optical lens leader long reliant on the increasingly saturated smartphone lens market, is expanding into semiconductor optical communications. The move is a major milestone in its efforts to leverage its precision-technology expertise, secure an early position in the AI transmission supply chain, diversify operating risks and transform its business.

At an investor conference in July 2026, Largan Chairman Adam Lin confirmed that the company had secured its first order for a CPO fiber array. It expects to complete a pilot production line in 2026 and begin mass production in mid-2027. The tangible progress in AI optical communications prompted a foreign institutional investor to upgrade the stock and raise its price target to NT$5,150, reflecting optimism about Largan’s long-term earnings potential in high-speed AI transmission components and prospects for a business turnaround.

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.

Largan Precision has long relied on lenses for Apple’s iPhone as the core of its business. To reduce its concentration risk in the smartphone market, the company is moving into co-packaged optics, or CPO, for AI data centers. Market reports say Largan has submitted samples to a TSMC-related platform as it develops fiber array units and optical coupling lenses. Chairman Adam Lin has stressed that these products do not constitute a complete CPO module and that commercialization will still take time.

On April 15, 2026, market reports said Largan had declined an additional Apple order for variable-aperture lenses for the iPhone 18. Its shares approached NT$3,000 intraday before closing at NT$2,820. In June, the company reported self-assessed April after-tax profit of NT$1.831 billion, up 88.5% from a year earlier. CPO-related interest drove the shares to their daily limit of NT$4,860 at one point on June 16. Lin also said Largan would establish its first automated FAU pilot production line before September.