Ayar Labs, a pioneer in co-packaged optics (CPO) for large-scale AI workloads, and Alchip Technologies, a leader in high-performance ASIC solutions, have announced a strategic partnership to accelerate the development of AI scale-up infrastructure. The collaboration addresses hyperscaler demand for AI accelerators and platforms that deliver superior performance, efficiency, and scalability.
This partnership unites Ayar Labs’ cutting-edge CPO technology, Alchip’s advanced packaging expertise, and TSMC’s packaging and process technologies to create a powerful ecosystem for optical engine innovation and adoption.
“Ayar Labs’ co-packaged optics technology unlocks the next era of AI infrastructure by removing the limitations of copper interconnects,” said Mark Wade, CEO and Co-Founder of Ayar Labs. “By combining our optical I/O innovation with Alchip’s deep expertise in advanced packaging, we’re building an ecosystem to accelerate the transition to power-efficient, high-performance AI systems.”
Traditional copper-based interconnects have not been able to keep pace with modern AI workloads. By integrating Ayar Labs’ optical I/O technology into Alchip’s high-performance ASICs, the companies plan to overcome these bottlenecks and enable multi-rack, scale-up architectures. The result is high-bandwidth, low-latency connectivity that expands memory and compute resources across large-scale systems and data centers while minimizing power consumption.
“Current and future AI workloads require innovative and often collaborative advanced packaging design expertise and production-ready solutions. Alchip has proven to the market that it has the entire skill set to serve tier 1 hyperscale customers,” said Johnny Shen, Chairman and CEO of Alchip Technologies. “We’re working with Ayar Labs to bring leading edge optical I/O technology to demanding high-performance next-gen designs, helping hyperscalers achieve new levels of data throughput and energy efficiency.”
Leveraging TSMC’s latest packaging and silicon innovations, including COUPE, TSMC-SoIC, and advanced process nodes, both the companies are tackling data movement bottlenecks while enabling scalable, repeatable architectures for next-generation AI systems.
Ayar Labs and Alchip will share additional details on their partnership and joint CPO solutions for AI data center scale-up in the coming weeks.

