Nvidia has commenced the shipment of its new Spectrum-X co-packaged optics (CPO) switches, developed in partnership with TSMC, to address critical data transmission and power consumption issues in AI data centers. These CPO switches integrate optical engines directly with switch chips, enabling more efficient data transfer and reduced energy usage, crucial as AI factories rapidly expand their computing capacity. The Spectrum-X switch offers a throughput of up to 400 terabits per second, with production capacity anticipated to increase in the latter half of the year. TSMC's COUPE platform plays a vital role in the packaging process, facilitating high-volume production of these advanced networking devices.