China-based SmartSens, Unisoc team up on Micro LED optical interconnects for AI clusters

SmartSens and Unisoc’s alliance signals China’s asymmetric push to bypass conventional silicon photonics by leveraging Micro LED-based co-packaged optics (CPO) for AI interconnects. Technically, this will accelerate integration across domestic VCSELs, driver ICs, and advanced packaging—especially benefiting CMOS image sensor firms with co-design capabilities. However, Micro LED yield and wavelength uniformity remain critical bottlenecks, limiting near-term disruption to Broadcom or Coherent in 800G+ optical modules. Geopolitically, the U.S. may tighten MOCVD equipment export controls, raising R&D costs. Competitively, NVIDIA could double down on TSMC’s CoWoS with integrated silicon photonics, while Huawei’s Ascend ecosystem may fast-track its own optical interconnect stack. Within 18 months, successful deployment in Chinese AI server clusters could catalyze the first Micro LED CPO standard, redefining China’s technological sovereignty in AI infrastructure.