Credo Semiconductor to acquire DustPhotonics to boost AI connectivity
Credo Semiconductor to acquire DustPhotonics to boost AI connectivity
On April 13, 2026, Credo Technology Group Holding Ltd, known as Credo, announced a definitive agreement to acquire the Israel-based firm DustPhotonics.
This strategic move is valued at $750 million in cash plus stock and aims to bolster Credo’s expertise in optical connectivity.
By bringing DustPhotonics’ Silicon Photonics technology in-house, Credo intends to create a vertically integrated stack that includes advanced signal processing and optical systems.
This is particularly important for the rapidly growing world of artificial intelligence.
As modern AI clusters require higher data speeds and better energy efficiency, the demand for reliable optical interconnects is at an all-time high.
DustPhotonics specializes in components ranging from 400G to 1.6T, which will help Credo meet the needs of large-scale cloud providers.
By integrating these specialized tools, the company expects to see significant financial growth, projecting over $500 million in optical revenue by fiscal 2027.
This acquisition highlights the critical importance of hardware innovation in supporting the massive infrastructure required for the next generation of computing.
