How much does a co-packaged 800G photonics system cost

A co-packaged 800G photonics system currently costs roughly $3,000 to $5,000 per module, depending on production scale, silicon photonics integration, and vendor.

Overview

Co-packaged optics (CPO) integrate the optical engine directly with the switch ASIC, reducing power consumption and improving bandwidth density compared to traditional pluggable modules . The 800G CPO systems typically use silicon photonics chips with multiple channels, each handling 100–200G per lane, and include photonic integrated circuits (PICs) and electronic integrated circuits (EICs) stacked or co-located on a silicon interposer . This integration reduces the number of discrete components compared to traditional EML-based modules, which require eight separate EML chips for 800G .

Factors Affecting Cost

1. Production Volume: High-volume production, such as STMicroelectronics' PIC100 platform, reduces per-unit cost through wafer-scale manufacturing and CMOS-compatible processes . Early production or low-volume deployments are significantly more expensive.
2. Technology Type: Silicon photonics modules are generally more cost-effective than traditional EML modules due to fewer discrete lasers and simpler assembly .
3. Integration Complexity: Co-packaging the optical engine with the ASIC increases design complexity, thermal management requirements, and interposer costs, which can raise the price compared to pluggable optics .
4. Market Segment: Hyperscale AI data centers are the primary buyers of 800G CPO systems, and pricing may be negotiated based on volume and long-term supply agreements .

Market Context

• 800G optical modules are emerging as the standard for AI clusters and high-density data centers, with shipments expected in the millions by 2026 .
• Silicon photonics adoption is increasing, with companies like STMicroelectronics scaling production to meet hyperscaler demand, which is expected to reduce costs over the next few years .
• Traditional 400G modules remain more cost-effective for enterprise workloads, while 800G CPO systems are optimized for power-sensitive, high-bandwidth environments .

Estimated Cost Range

Based on current market trends and production data:

• Low-volume or early-adoption 800G CPO modules: $5,000–$7,000 per module
• High-volume, mass-produced silicon photonics 800G modules: $3,000–$5,000 per module These estimates reflect the integration of PICs, EICs, and co-packaging with ASICs, and may vary depending on vendor, contract terms, and deployment scale .

Conclusion

While exact pricing is proprietary and varies by vendor, an 800G co-packaged photonics system is currently in the $3,000–$5,000 range per module for mass production, with early or low-volume deployments costing more. Costs are expected to decrease as silicon photonics manufacturing scales and co-packaged optics become more widely adopted in hyperscale AI and cloud data centers.