Credo Technology Group has agreed to acquire DustPhotonics in a deal valued at about $ 750 million, with additional payments tied to performance.
The transaction is aimed at expanding Credo’s capabilities in silicon photonics, a key technology for next-generation optical connectivity in AI-driven data centres.
DustPhotonics develops silicon photonic integrated circuits that combine multiple optical functions onto a single chip, enabling higher bandwidth, lower power consumption and improved efficiency.
Its solutions support data speeds from 400G to 1.6T, with a roadmap extending to 3.2T, and are already deployed in hyperscale environments.
By integrating this technology, Credo plans to combine optical capabilities with its existing strengths in high-speed electrical connectivity, including SerDes and digital signal processing.
The company expects this vertical integration to reduce reliance on external suppliers, speed up product development and improve cost efficiency.
Credo said the acquisition will significantly expand its addressable market in the optical sector, where demand is rising तेजी due to the growth of AI infrastructure.
The combined platform is expected to deliver end-to-end solutions spanning both electrical and optical interconnects.
The deal is expected to close in the second quarter of 2026, subject to regulatory approvals.
Credo projects its optical business could exceed 500 million dollars in annual revenue by fiscal 2027 as adoption accelerates.
