zhongda-ky lands exclusive deal for 'world's strongest' chip packaging
taipei, Wednesday, 11 June 2025.
Taiwan’s zhongda-ky has secured an exclusive contract with Broadcom to package its data center switch chips, hailed as the “world’s strongest.” This deal, leveraging zhongda-ky’s silicon photonics expertise, briefly sent its stock soaring. The Tomahawk 6 chip boasts a transmission capacity of 102.4Tbps. This win underscores the company’s growing prominence in high-end chip packaging and its deepening collaboration with semiconductor giant Broadcom. The chips can support systems with over 100,000 GPUs. This highlights the increasing demand for advanced packaging solutions driven by data center innovation.
Stock surges on broadcom deal
Zhongda-ky’s stock experienced a surge, hitting its upper limit, following the announcement of the Broadcom deal [1][2]. On June 9, 2025, the stock opened higher and quickly reached the涨停 (zhǎng tíng, limit-up) price, briefly trading above NT$90 [2]. The increased trading volume, exceeding 7,300 shares, surpassed the previous week’s total, indicating strong investor interest [2]. This surge reflects market confidence in Zhongda-ky’s prospects due to the expected strong demand for its silicon photonics-based CPO products [1][2].
cpo leadership and future growth
Zhongda-ky has been strategically focused on developing Co-Packaged Optics (CPO) solutions, a key technology for next-generation data centers [1][2]. The company’s collaboration with Broadcom began in 2021, progressing through 25.6T and 51.2T all-optical switches [1]. CPO solutions offer significant power savings, reducing optical connection power consumption by over 50% compared to traditional pluggable optical modules [1]. Zhongda-ky anticipates that 2025 will be the first year of CPO application, with widespread adoption in hyperscale data centers expected by 2026 [1].
tomahawk 6 chip details
Broadcom’s Tomahawk 6 switch chip is a significant advancement, boasting a 102.4Tbps transmission capacity [1][2]. The chip is designed to improve the efficiency of AI accelerator chips and is slated for mass production in July [1][2]. While the Tomahawk 6’s manufacturing cost and price are approximately double those of its predecessor, its capabilities justify the investment [1]. The estimated unit price is expected to be below US$20,000, with discounts available for bulk purchases [1]. The chip is capable of supporting systems with over 100,000 GPUs, requiring one switch for approximately every ten GPUs [1].
analyst perspectives and market trends
Analysts highlight the growing need for CPO solutions in AI servers to address the high power consumption of copper wire transmission and the limitations of GPU interconnectivity [2]. Major technology players such as Broadcom, Marvell, and IBM are actively investing in CPO [2]. Zhongda-ky’s exclusive supply of laser optical packaging for Broadcom’s CPO solutions positions it favorably to capitalize on this trend [1][2]. The company expects to enter mass production of CPO products in 2026, following customer certification [2].
broader market context
The broader Taiwanese stock market showed strength on June 4, 2025, with the Taiex index closing up 491.16 points at 21,618.09, a 2.32% increase [3]. The semiconductor sector saw a significant gain of 3.64%, with Taiwan Semiconductor Manufacturing (TSMC) rising 4.21% to NT$990 [3]. Quanta Computer, another key player in the tech sector, reported May revenue of NT$160.242 billion, a 4.05% monthly increase and a 58.19% annual increase [4][5]. This positive market sentiment, coupled with Zhongda-ky’s strategic positioning, bodes well for its future financial performance [1][2][3][4][5].