Credo Technology Group Holding Ltd finalized its acquisition of silicon photonics specialist DustPhotonics. The deal adds Photonic Integrated Circuits (PICs) to Credo’s high-speed optical connectivity portfolio.

The integration targets the infrastructure requirements of AI and hyperscale data centers. Credo will combine its digital signal processors (DSPs) and SerDes with advanced optical technology.

This vertical integration aims to lower costs for next-generation transceivers ranging from 800G to 3.2T. Credo expects the combined optical business to drive significant growth by fiscal 2027.