AI Data Centers Boosting Optical Communication: U.S. Semiconductor Acquires $750 Million Silicon Photonics

Credo Technology Group Holding Ltd (NASDAQ: CRDO) announced on April 13 that it has signed a definitive agreement to acquire DustPhotonics, a silicon photonics integrated-circuit technology company. The purchase consideration consists of $750 million in cash, shares of Credo common stock and contingent stock based on future financial performance, which together could total approximately KRW 1 trillion.

Through this transaction, Credo will build a vertically integrated optical portfolio encompassing its zero-flap optical transceivers, digital signal processors (DSPs) and silicon photonics products. The combined offering will position the company across the 400 Gb/s, 800 Gb/s, 1.6 Tb/s and future 3.2 Tb/s optical-solution markets. Credo is targeting more than $500 million in optical revenue—roughly KRW 700 billion—in fiscal year 2027, alongside non-GAAP earnings-per-share accretion. The deal is expected to close in the second quarter of 2026.

Credo’s Chief Technology Officer, Cheung Chi-fung, sold several tens of thousands of shares in two tranches—on March 24 and April 6—under a pre-arranged Rule 10b5-1 trading plan, generating approximately $5.6 million in proceeds (around KRW 70 billion). According to the company’s filings, he still holds more than 6 million shares in trust.

In its third-quarter fiscal 2026 results, announced March 2, Credo reported revenue of $407 million and net income of $157 million. The company also provided fourth-quarter revenue guidance of $425 million to $435 million.

Following the DustPhotonics acquisition announcement, Credo’s shares surged 10 %–15 % in U.S. over-the-counter and premarket trading, reflecting investor optimism about optical connectivity growth in AI data centers.

Credo is a U.S. semiconductor company that supplies high-speed, low-power, high-reliability interconnect solutions for AI applications, cloud services and hyperscale data centers. Its product portfolio includes active electrical cables, optical transceivers, memory solutions, retimers and DSPs.

Industry observers note that Credo already commands a strong position in the active electrical cable market. With the addition of DustPhotonics, the company is poised to leverage silicon photonics–based photonic integrated circuits and high-speed optical modules to capture a greater share of the expanding AI data-center optics market.