TAIPEI (Taiwan News) — Taiwan-listed Pcl Technologies said Friday that its board has approved the full acquisition of four companies under Pingood Enterprise Co.

The move is part of its strategy to strengthen capabilities in precision mechanical components for silicon photonics co-packaged optics (CPO) applications, according to CNA and Anue.

Pcl currently designs, develops, manufactures, and sells high-speed optical transceiver modules used in data transmission systems in data centers, according to Pocket Securities. Through the acquisition, the company plans to extend its reach into high-precision plastic and metal component manufacturing.

The company said the integration will help improve production flexibility across its manufacturing sites and speed up product development and commercialization. It also expects the deal to support business diversification and cross-domain research and development.

These efforts come as demand shifts in data center transmission technology. In traditional circuit boards, data is transmitted through copper wiring using electronic signals.

However, rising demand for faster transmission in AI data centers has driven development of silicon photonics, which uses light instead of electrons to transfer signals on chips. Light-based transmission is faster and generates less heat than electronic signaling, enabling higher efficiency and improved performance in data-intensive environments, according to Business Next.

The company said CPO technology is expected to play an increasingly important role in future data centers and artificial intelligence infrastructure. The precision components involved in the planned acquisitions would support the company’s expansion into the sector.