AMD's Enosemi Acquisition: Powering Next-Gen AI With Photonics

The acquisition of Enosemi by Advanced Micro Devices (AMD), announced on May 28, 2025, aims to strengthen AMD’s capabilities in co-packaged optics and photonics for next-generation AI systems.

Enosemi specializes in photonic integrated circuits (PICs), which enable co-packaged optics, a technology that uses laser light over fiber optic cables for data transmission between chips. This offers faster speeds compared to traditional copper-based connections. Enosemi’s partnerships with GlobalFoundries (for chip fabrication) and Jabil (for photonics packaging) will enhance AMD’s supply chain and manufacturing capabilities for photonics solutions.

This brief is based on Yole Group’s photonics collection of reports. Ensure a better understanding of these technological innovations, including advances in co-packaged optics, all detailed in the new report, Co-Packaged Optics for Data Centers 2025… and identify significant investments and business opportunities! Enjoy reading today’s snapshot!

Strengthening AMD’s full-stack AI strategy
The acquisition positions AMD to address emerging trends in AI and high-performance computing, where optical interconnects are expected to play a central role. This could give AMD a first-mover advantage in markets prioritizing energy efficiency and speed.

By integrating Enosemi’s expertise, AMD can accelerate the development of optical interconnects, positioning itself to compete more effectively with Nvidia, which dominates the AI hardware market.

The acquisition aligns with AMD’s broader strategy to build a comprehensive AI ecosystem, combining CPUs, GPUs, adaptive SoCs, networking, software, and system integration. By incorporating Enosemi’s technology, AMD can offer full-stack AI solutions with enhanced data movement capabilities, positioning itself as a one-stop provider for data centers, like Nvidia with its DGX systems.

The comprehensive Yole Group’s analysis, Co-packaged Optics for Data Centers 2025 is now available, offering in-depth insights into the growing role of photonic integrated circuits in high-performance computing.