ADS Tech Secures $6.6M Co-Packaged Optics Equipment Order from NVIDIA and Marvell, Signaling Shift in AI Infrastructure

Sungho Electronics' subsidiary, ADS Tech, has received a KRW 10 billion order from NVIDIA and Marvell for Co-Packaged Optics (CPO) equipment.

This order validates ADS Tech's core technology as the bottleneck in AI data centers shifts from computing power to high-speed networking and connectivity.

Future growth depends on the successful rollout of NVIDIA's CPO-based switches, with the potential for significant follow-up orders.

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Sungho Electronics' subsidiary, ADS Tech, has landed a landmark KRW 10 billion (approx. $6.6 million) order from AI giants NVIDIA and Marvell.

This order is for specialized equipment used to manufacture Co-Packaged Optics, or CPO. Think of CPO as the next-generation highway for data inside AI data centers. It integrates optical components directly with processing chips, drastically reducing power consumption and overcoming the data transfer limitations of traditional copper wiring.

This development didn't happen in a vacuum; it's the result of a clear causal chain. First, the bottleneck in building massive "AI Factories" is no longer just about having faster chips—it's about connecting them efficiently. NVIDIA's CEO, Jensen Huang, emphasized this at Computex 2026, even calling networking company Marvell a potential "next trillion-dollar company," highlighting the critical role of connectivity.

Second, NVIDIA has been laying the groundwork for months. At its GTC conference in March 2026, it confirmed that CPO technology is a core part of its future roadmap for data center switches. This strategic direction, combined with a $2 billion investment in Marvell, signaled to the supply chain that the era of CPO was approaching.

Finally, ADS Tech has been proving its capabilities. Before this major order, it had already secured smaller deals with other key players like Broadcom and Corning. These wins served as crucial validation, demonstrating that its Active Alignment technology—a highly precise method for assembling optical components—is ready for mass production.

In essence, this order from NVIDIA and Marvell is more than just a number. It's a strong signal that the industry's shift to optical interconnects is accelerating, and ADS Tech has positioned itself as a key equipment supplier in this critical transition.

Co-Packaged Optics (CPO): A technology that bundles silicon chips and optical components into a single package, enabling faster and more energy-efficient data transfer than traditional methods.
Active Alignment: A high-precision manufacturing process that uses powered-on components to actively align optical fibers and lenses for optimal signal transmission, crucial for complex CPO assemblies.