CRDO Rises on its $750M DustPhotonics Deal for Silicon Photonics

CRDO's $750M DustPhotonics deal boosts silicon photonics capabilities, aiming to reshape AI data center connectivity and drive growth through 2027.

To capitalize on the rapid evolution of AI infrastructure, Credo Technology Group Holding Ltd. CRDO has agreed to acquire DustPhotonics, a leader in Silicon Photonics Photonic Integrated Circuit (SiPho PIC) technology. The deal, valued at $750 million in cash plus stock and performance-based incentives, is likely to transform the broader optical connectivity ecosystem powering next-generation AI workloads.

DustPhotonics strengthens CRDO’s optical roadmap and expands its market opportunity. DustPhotonics brings advanced SiPho PICs across 400G to 1.6T, with a path to 3.2T, integrating multiple optical functions onto a single chip. This reduces complexity, improves yields and lowers costs as speeds scale beyond 800G. The technology also enhances reliability in AI data centers and is already used in hyperscale deployments, with further applications in NPO and CPO under development.

By acquiring DustPhotonics, Credo is making a decisive push to become a vertically integrated connectivity powerhouse, spanning SerDes, DSP, SiPho PICs and system-level integration. This comprehensive stack positions Credo to compete more effectively in both scale-out networks and scale-up architectures. This acquisition goes beyond adding products as it........

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