Huawei unveils industry's first NPO supernode Ascend 960; analysts see mass production by 2028

At Huawei Connect 2026, held this week, Huawei introduced the industry's first supernode incorporating NPO (Near-Packaged Optics) technology—the Ascend 960 Supernode.

Hi-ONE NPO Product: Key Specifications

The NPO product integrated into the supernode is named Hi-ONE. Built on Huawei's independently developed technologies, it achieves a transmission capacity of 7.2T per engine through a balanced design encompassing optical, mechanical, electrical, magnetic, and thermal elements.

According to Huawei, this will be the industry's first mass-produced NPO product and currently holds the highest transmission capacity among NPO products in the sector.

Launch Timeline for Ascend 960 Series

Within the Ascend 960 supernode series:

• Atlas 960 liquid-cooled supernode — scheduled for launch in Q3 2027
• Atlas 860 air-cooled supernode — scheduled for release in Q2 2027

This timeline indicates that less than one year remains before NPO achieves large-scale commercial deployment.

Understanding NPO Technology

NPO (Near-Packaged Optics) refers to near-packaged optics, serving as an intermediate transition solution between traditional pluggable optical modules and CPO (Co-Packaged Optics). Its fundamental change lies in relocating the optoelectronic conversion position from the device front panel.

Analyst Perspectives

Tianfeng International Securities

NPO optical modules may represent the optimal solution for new scenarios such as AI computing clusters based on supernodes. The firm noted:

• With the rapid expansion of computing power demand driven by large AI models, the construction of domestic ten-thousand-card intelligent computing clusters is accelerating.
• Traditional front-panel pluggable optical modules, which previously supported long-distance networking across racks, are revealing performance bottlenecks in tightly coupled ten-thousand-card supernode scenarios within racks.
• NPO strikes a relative balance among bandwidth density, power consumption, and maintainability.

Zhongtai Securities

Challenges identified include:

• Panel-to-electrical channel losses
• Module DSP power consumption
• Heat dissipation constraints
• Limited front-panel space

By deploying optically independent engines—which can be manufactured, tested, and replaced separately—near the ASIC, NPO shortens electrical channels while retaining component screening, yield isolation, and certain repair flexibility. It thus serves as a more realistic engineering transition platform for current near-packaged optics.

Acceleration of NPO Industrialization

Various signs indicate that NPO is not only poised to become the best interconnect solution for supernodes but also aligns well with the implementation needs of China's domestic optical interconnect industry.

Recent Industry Events

The 27th China International Optoelectronic Expo (CIOE) was recently held at the Shenzhen World Exhibition & Convention Center. In a prior article titled "Orders Booked Until Next Year! 1.6T Takes Center Stage Among Optical Modules," the STAR Market Daily noted that numerous optical communication companies are actively engaged.

Equipment Developments

Equipment manufacturers have successively showcased packaging and testing equipment tailored for NPO technical solutions, including:

• Eutectic bonding
• Die attach
• Coupling
• Wire bonding
• Chip testing
• Burn-in testing

Companies such as Weijian Intelligent, LaserTech, and Zhongnan Hongsi exhibited coupling machines for optical modules and NPO/CPO. Kage Precision Machinery and Xinyichang also participated.

Guolian Minsheng Securities

The firm stated that this year's Shenzhen Optoelectronics Expo further validates that industrial trends are expanding beyond simple upgrades to high-speed optical modules, gradually spreading to:

• Network architecture
• Switching equipment
• Optoelectronic integration

The evolution of 1.6T and higher-speed optical modules is accelerating, while new technologies like NPO are moving from solution validation toward industrial implementation.

NPO is expected to be among the first beneficiaries of Scale-up networks' higher demands for bandwidth density and power efficiency. While maintaining good maintainability and ecosystem compatibility, NPO drives optical interconnects closer to switching chips. As AI cluster scales continue to expand, the growth logic of optical communications is expected to extend from "speed upgrades" to "architecture upgrades." NPO is likely to unlock new incremental opportunities in segments such as optical engines, optical components, and optical switching.

Wanlian Securities

As a new solution offering low signal loss amid increasing optical interconnect bandwidth, visibility regarding NPO demand and orders is gradually improving. The industrialization process is shifting from technical validation to customer adoption and order fulfillment. Market consensus anticipates:

• Small-scale volume ramp-up in 2027
• Large-scale mass production in 2028

Challenges to NPO Volume Production

Achieving large-scale volume production for NPO is not without obstacles. Persistent issues include:

• Non-unified interface specifications
• Insufficient product compatibility
• Low supply chain coordination efficiency

Guotai Haitong Securities

Although solutions like XPO are being intensively demonstrated, large-scale volume production still depends on supporting infrastructure from downstream switches and servers.

Zhongtai Securities

The difficulties in NPO industrialization are not limited to the optical engine itself but also include:

• 224G high-speed electrical interfaces
• PIC and EIC packaging
• External light sources
• High-throughput requirements

Current 3.2T NPO primarily serves pilot functions and operational data accumulation. Upgrading to 6.4T and 7.2T implies a comprehensive generational shift in electrical, optical, packaging, and testing systems. Silicon photonics and VCSELs will develop in parallel according to requirements for transmission distance, fiber core count, and power consumption. Whether NPO can evolve from samples to a universal platform ultimately depends on:

• Interface standards
• Assembly yields
• Long-term operational data
• Field maintenance costs

Source: STAR Market Daily