CREDO ACQUIRES ISRAELI CHIP FIRM DUSTPHOTONICS FOR $1.3B
INDUSTRY DESKTUE, APR 14, 2026
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Credo, a US data center connectivity specialist, has agreed to acquire Israeli chipmaker DustPhotonics in a cash-and-stock deal valued at up to $1.3 billion. The acquisition combines Credo's connectivity expertise with DustPhotonics' photonic chip technology.
DustPhotonics develops photonic chips designed to enable faster, lower-cost data transfer in next-generation AI clusters. The technology addresses growing bandwidth demands in data centers as artificial intelligence workloads scale.
The deal structure includes both cash and stock components, with the total valuation reaching $1.3 billion. The acquisition allows Credo to expand its portfolio beyond traditional connectivity solutions into advanced semiconductor technology.
DustPhotonics' photonic approach offers potential advantages in power efficiency and data transfer speeds compared to conventional electrical interconnects. This aligns with industry trends toward optical solutions in data center infrastructure.
The combination positions Credo to serve AI infrastructure providers seeking integrated connectivity and chip solutions. The deal requires customary closing conditions and approvals.