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Corning Incorporated GLW recently announced that it has entered into a multi-year collaboration with Broadcom Incorporated (AVGO), a premier designer, developer, and global supplier of a broad range of semiconductor devices. Through this partnership with Corning, Broadcom is aiming to deliver a next-generation co-packaged optics (CPO) infrastructure designed to enhance the processing capabilities of data centers, marking a significant step toward addressing the growing demands of artificial intelligence (AI) workloads.
In today’s hyper-connected digital world, as AI technologies evolve and scale, data centers are increasingly focusing on delivering faster performance, higher bandwidth, and improved energy efficiency. Broadcom’s Bailly CPO system features eight optical engines, each offering 6.4 terabit per second (Tbps) of bandwidth through silicon photonics. These engines are co-packaged with the Tomahawk5 Ethernet switch chip, enabling seamless high-speed data transmission. Corning will serve a critical role as a qualified supplier of the optical infrastructure supporting these engines.
The company will provide a suite of high-performance optical components, including fiber harnesses equipped with front-plate and external laser module connectors, single-mode and polarization-maintaining fibers, and precision fiber array units. The integration of such cutting-edge technologies is expected to deliver significant improvements in optical interconnection density and power savings, making it the industry’s first CPO-based 51.2 TBps ethernet switch.
Does GLW Stock Stand to Gain From the Partnership?
Corning’s competitive strength lies in its focus on innovation. The company offers a range of products focused on the data center, with a portfolio that includes optical fiber, hardware, cables, and connectors, enabling it to create customized optical solutions that meet evolving customer needs. The growing adoption of innovative optical connectivity products for generative AI applications is expected to be a key growth driver in the Optical Communication segment.
Corning continues to expand its portfolio of data center solutions with innovations like the CPO FlexConnect Fiber. This single-mode fiber is engineered for enhanced bend performance and reduced multi-path interference, optimizing overall system performance within CPO architectures.
In addition to this effort, both companies are now expanding their efforts to develop next-generation CPO solutions based on 200G per lane technology, aiming to unlock even greater efficiency and data throughput. These advancements are expected to generate incremental demand for Corning’s solutions, leading to higher revenues. An improved financial performance is likely to propel the stock upward.