Keysight Acquires VPIphotonics to Strengthen AI Chip Design Capabilities

Key Facts

In a move reflecting the accelerating investment in AI infrastructure, Keysight Technologies has acquired VPIphotonics to enhance its photonic design automation portfolio. According to reports, the acquisition aims to meet the surging demand for silicon photonics and co-packaged optics within modern data centers. Keysight seeks to expand its design automation offerings from the circuit level to full system-level design for photonic integrated circuits (PICs).

This transaction occurs as the optical semiconductor sector experiences significant growth, with industry leaders like NVIDIA and Broadcom pushing for co-packaged optics to reduce power consumption in data centers. Compared to peers, this move strengthens Keysight's position against competitors such as Cadence Design Systems, which has also expanded into optical simulation. Per market data, demand for photonic design solutions is growing at a robust annual rate as the tech sector moves toward data transfer speeds exceeding 800Gbps.