Semiconductor Company Expands AI Data Center Optics with $750 Million Acquisition of Silicon Photonics

Credo Technology Group Holding Ltd (CRDO) on April 13 signed a definitive agreement to acquire Dust Photonics, a developer of silicon-photonic integrated circuits. The deal comprises $750 million in cash and approximately 920,000 shares of Credo common stock, with up to an additional 3.21 million shares payable upon achievement of performance milestones—bringing the total transaction value to roughly $1.3 billion. The acquisition supports Credo’s strategy to build a vertically integrated portfolio spanning optical transceivers and silicon photonics, strengthening its position in the next-generation optical interconnect market—from 400G and 800G to 1.6T and, eventually, 3.2T. The company expects combined optical product revenues to exceed $500 million in fiscal 2027 and to contribute positively to non-GAAP EPS that year.

On April 6 and April 15, respectively, Credo’s Chief Technology Officer and Chief Legal Officer each sold a portion of their holdings on the open market under pre-arranged trading plans. Both executives continue to hold several million shares, indicating these transactions represented only partial dispositions of their stakes.

Alongside the Dust Photonics acquisition announcement, Credo introduced new products—an 800G zero-flap optical transceiver and the 1.6T “Cardinal” optical DSP—and in late March reached a settlement to resolve patent disputes with Molex and TE Connectivity. These initiatives speed up Credo’s expansion in optical and high-speed connectivity solutions for AI data centers.

Headquartered in Silicon Valley, Credo is a fabless semiconductor company providing high-speed, low-power connectivity solutions for cloud, AI and hyperscale data centers. As the communications and data-center industry shifts from traditional electrical interconnects to optical and silicon photonics, Credo is leveraging vertical integration in optics to capture greater market share.