Credo Agrees to Acquire DustPhotonics, Accelerating Expansion into Silicon Photonics and Next Generation Optical Connectivity

SAN JOSE, Calif.--(BUSINESS WIRE)--Apr 13, 2026--

Credo Technology Group Holding Ltd (Credo) (NASDAQ: CRDO), an innovator in providing secure, high-speed connectivity solutions that deliver improved reliability and energy efficiency for the next generation of AI-driven applications, cloud computing, and hyperscale networks, today announced it has entered into a definitive agreement to acquire DustPhotonics, a leading developer of Silicon Photonics Photonic Integrated Circuit (SiPho PIC) technology for optical transceivers. The acquisition will position Credo with a vertically integrated connectivity stack spanning SerDes, Digital Signal Processing (DSP), Silicon Photonics and system integration for scale out and scale up networks — addressing both electrical and optical interconnects across the full AI infrastructure buildout.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260413933103/en/

Strategic Rationale

The acquisition of DustPhotonics directly accelerates Credo's optical interconnect roadmap and significantly expands its served addressable market in the global optical industry. DustPhotonics has developed a differentiated portfolio of SiPho PICs spanning 400G, 800G, and 1.6T, with a roadmap extending to 3.2T, that integrates key optical functions onto a single chip, reducing component complexity, improving manufacturing yields, and enabling meaningfully lower cost at scale as port speeds advance beyond 800G. In combination, these factors improve AI cluster reliability, a critical factor for data center operators. These SiPho PICs are deployed in transceivers at leading hyperscale AI clusters and are also in design for leading Near Port Optics (NPO) and Co-Packaged Optics (CPO) applications. According to LightCounting 1 and Credo estimates, the SiPho PIC market is expected to grow to $6 billion by 2030.

Critically, SiPho PIC technology is a foundational component of Credo's ZeroFlap (ZF) Optical Transceiver platform. Bringing this capability in-house mitigates external supply dependencies, accelerates product development cycles, and creates a pathway to substantial cost structure improvement at volume. Combined with Credo's industry-leading SerDes and DSP intellectual property and products, the acquisition creates an end-to-end optical connectivity solution platform.

Credo believes it has reached an inflection point in its optical business. With the addition of DustPhotonics, the company expects its combined portfolio of ZeroFlap Optical Transceivers, Optical DSPs, and Silicon Photonics products to generate greater than $500 million in optical revenue in fiscal 2027, reflecting strong customer traction and expanding adoption across hyperscale AI deployments.

Quotes

William Brennan, Chairman, President and Chief Executive Officer, Credo Technology:

“Combining forces with DustPhotonics marks a defining step in Credo’s strategy to lead across the full spectrum of AI connectivity. We’ve built a strong position in high-speed electrical solutions, and this move decisively expands that leadership into Silicon Photonics with best-in-class PIC technology that complements our ZeroFlap Optical Transceivers and DSP portfolio.

This combination positions us at an inflection point in optical. As adoption accelerates across hyperscale AI infrastructure, we expect our optical business to scale into a meaningful and rapidly growing contributor by fiscal 2027.

More importantly, we are building a vertically integrated connectivity platform that spans from copper to optical and from chip to cluster—allowing us to solve for the two constraints that matter most at scale: reliability and power efficiency, while deepening our role as a strategic partner to our customers.”

Ronnen Lovinger, Chief Executive Officer, DustPhotonics:

"Joining Credo is the natural next step for DustPhotonics. We built this company with a clear conviction that Silicon Photonics would become the structural foundation of high-speed optical connectivity as AI infrastructure scales. Credo shares that conviction and brings the SerDes IP, the hyperscaler relationships, and the operational scale to turn that vision into reality far faster than we could independently. This is an exceptional outcome for our team, our customers, and the broader industry."

Gavin Baker, DustPhotonics Investor; Managing Partner and Chief Investment Officer of Atreides Management, LP.:

“We believe DustPhotonics' Silicon Photonic ICs and engines are a natural extension to Credo's existing capabilities in optical connectivity, building on strong momentum across Credo’s DSP, ZF Optical Transceiver platform, and future Active LED Cable (ALC) product lines. As a key element in any silicon photonic optical link, DustPhotonics’ products and technologies enable high-speed optical connectivity at lower power and cost compared to traditional pluggable transceivers. In combination, the companies further strengthen Credo’s current foundation for more scalable, reliable, and energy-efficient scale-out and scale-up AI connectivity."

Avigdor Willenz, Chairman of DustPhotonics:

“Silicon photonics is becoming a critical building block for AI infrastructure, and DustPhotonics has built a truly differentiated technology platform in this space. We have been disciplined in focusing on the right architecture and execution, and the results are evident in both the product and customer traction. Combining with Credo creates a powerful platform with the scale, integration, and customer access required to fully capture the opportunity ahead."

Transaction Details

Credo will acquire DustPhotonics for upfront consideration of $750 million cash and approximately 0.92 million shares of Credo common stock, subject to the terms and conditions of the definitive agreement. In addition, Credo may pay incremental contingent consideration of up to approximately 3.21 million shares based on the achievement of certain financial milestones, subject to the terms of the definitive agreement. Credo expects the transaction will be accretive to non-GAAP earnings per share in Credo’s fiscal 2027. The transaction is expected to close in the second quarter of calendar 2026, subject to customary closing conditions and regulatory approvals.

Conference Call

Credo will conduct a conference call on Tuesday, April 14, 2026, at 10:00 a.m. Pacific Time to discuss its proposed acquisition of DustPhotonics. Interested parties may join the conference call beginning at 10:00 a.m. Pacific Time on Tuesday, April 14, 2026, by dialing (800) 715-9871 (toll-free) or +1 (646) 307-1963 (international). The conference ID for the call is 5273210. It is recommended that participants dial in to the call at least 10 minutes before the start of the call. A live webcast of the conference call will be available on Credo’s Investor Relations website at http://investors.credosemi.com. A replay of the webcast will be available via the web at http://investors.credosemi.com.

About DustPhotonics

DustPhotonics is a fabless semiconductor company developing SiPho PICs for high-speed optical transceivers. Founded in 2017 and headquartered in Israel, DustPhotonics has developed a differentiated PIC portfolio spanning 400G, 800G, and 1.6T, with a roadmap that extends to 3.2T, and with integrated and external laser configurations.

DustPhotonics has assembled a team of approximately seventy employees with deep expertise in photonic integration. The company operates a fabless model and has secured design wins with leading hyperscale cloud customers, providing a platform for expansion.

About Credo

Credo’s mission is to transform connectivity at scale through fast, reliable, and energy-efficient system solutions. Our high-speed copper and optical interconnect products deliver industry-leading power and performance at up to 1.6T to meet the ever-expanding data infrastructure demands of AI.

Our product portfolio includes ZeroFlap Active Electrical Cables (AECs), ZF Optical Transceivers, OmniConnect memory solutions, and a suite of retimers and DSPs for optical and copper Ethernet and PCIe, all leveraging the PILOT diagnostic and analytics software platform. Credo innovations enable our customers to connect the systems that connect the world.

For more information, please visit https://www.credosemi.com. Follow Credo on LinkedIn.

Credo and the Credo logo are registered trademarks of Credo Technology Group Limited in the United States and other jurisdictions. All other trademarks referenced herein are the property of their respective owners.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact could be deemed forward-looking statements, including, but not limited to, any statements regarding our acquisition of DustPhotonics, launches of new or expansion of existing products or services; technology developments and innovation; our plans, strategies or objectives with respect to future operations; financial outlook; future financial results; expectations regarding the markets and industries in which Credo conducts business; and assumptions underlying any of the foregoing. Words such as “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “seeks,” “estimates,” “can,” “may,” “will,” “would,” “outlook,” “forecast,” “targets” and similar expressions, or their negatives, may identify such forward-looking statements. These statements are not guarantees of results and should not be considered as an indication of future activity or future performance. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties that may cause actual events or results to differ materially from those described in this press release, including but not limited to: the ability to complete the acquisition on the expected timeline or at all; the ability to successfully integrate DustPhotonics' operations and technology; the ability to achieve the financial milestones underlying the earnout consideration; competitive developments in the optical interconnect market; and general macroeconomic and semiconductor industry conditions. Readers are encouraged to review risk factors and all other disclosures appearing in Credo’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission (SEC) on July 2, 2025, as well as Credo’s other filings with the SEC, for further information on risks and uncertainties that could affect Credo’s business, financial condition and results of operation. Copies of these filings are available from the SEC, Credo’s website or Credo’s investor relations department. Forward-looking statements speak only as of the date they are made. Credo undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this release. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.

1 According to unit data from the LightCounting’s Silicon Photonics, Linear Drive Pluggable and Co-packaged Optics published November 21, 2025.

Ronnen Lovinger, CEO DustPhotonics

William Brennan, Chairman, President and Chief Executive Officer, Credo

Credo Agrees to Acquire DustPhotonics, Accelerating Expansion into Silicon Photonics and Next Generation Optical Connectivity

BEIRUT (AP) — President Donald Trump acknowledged criticizing Israeli Prime Minister Benjamin Netanyahu as “crazy” in a phone call that involved expletives, saying he was “a little bit perturbed” that Israel’s fighting with Hezbollah militants in Lebanon was holding back peace talks with Iran.

But even as the U.S. president conceded the tensions in an interview released Wednesday, he insisted that his relationship with Netanyahu was solid and that they connected, in part, because they are both “wartime” leaders.

“We’ve worked very well together. I like Bibi a lot. And I work very well with him,” Trump told The New York Post’s “Pod Force One.”

In an interview on the American business-news channel CNBC, Netanyahu responded that he and Trump sometimes have “tactical disagreements” but have “common goals” and “agree on the main things.”

“He respects me. I respect him. We always find a way to work out our differences,” the prime minister said.

The president's comments about the Monday call offered a sign of the growing pressure he faces to resolve the Iran war as higher energy prices and economic uncertainty threaten Republican prospects in the midterm elections and hamper global commerce.

Talks have dragged on for weeks as mediators seek to extend a fragile ceasefire into a more enduring truce. The negotiations are further strained by Israel’s broadening war with the Iranian-backed militia group in Lebanon. The conflicts have become increasingly intertwined as Iran insists that any potential truce in the war there must also quell the fighting in Lebanon.

Trump remained noncommittal about a timeline for settling the Iran conflict, saying the Strait of Hormuz might stay blocked through the Labor Day holiday on Sept. 7. He has insisted that Iran stop any efforts that could lead to a nuclear weapon and that the strait be reopened for shipments of oil and natural gas.

“I don’t know. I mean, I think it could be (closed through Labor Day), but I think it’s unlikely. I think that we’ll have it. I think this will resolve itself fairly quickly,” Trump said.

Iran’s Supreme Leader Mojtaba Khamenei, who succeeded his late father, is “involved” in peace talks, Trump added.

“They have a lot of respect for him,” the president said in the interview.

Trump said that Khamenei is not doing well due to wounds sustained in an airstrike, but “they say he’s giving approval because that’s the way it has been for a long, long time." Khamenei's father was killed in an airstrike when the U.S. and Israel attacked Iran at the end of February.

Meanwhile in the Persian Gulf region, Kuwait briefly shut its main airport Wednesday after Iranian drones hit a passenger terminal building, killing one person and wounding dozens. It was the latest in the back-and-forth attacks by Tehran and Washington that have tested the ceasefire.

The strike again brought home the risks to residents and travelers in Gulf countries that had considered themselves relative safe havens before the war, now in its fourth month.

The path toward a lasting ceasefire between Israel and Hezbollah remained unclear as hostilities continued in Lebanon.

An Israeli strike Wednesday hit a car on a busy highway just south of Beirut, hours before the second day of talks between Lebanon and Israel in Washington were set to take place.

The strike in Khaldeh came without warning, and it was not immediately clear if the person targeted was killed.

Israel and Lebanon on Monday reached a U.S.-brokered agreement in which Israel would not strike Beirut's southern suburbs and Hezbollah would end its attacks on northern Israel.

The agreement was made hours after Israel announced that it was going to launch strikes across the sprawling urban neighborhoods near the Lebanese capital in what would have been the most intense strikes since a nominal ceasefire went into effect on April 17.

The State Department said progress was made during the first day of talks on Tuesday. Lebanon hopes to widen the scope of the ceasefire so it becomes comprehensive across the country. Israel wants to disarm Hezbollah immediately before the Israeli military ends its operations in Lebanon and withdraws its troops from dozens of villages and towns.

Not long after the strike on Khaldeh, the Israeli military said it intercepted what it called a hostile aircraft coming from southern Lebanon, but it did not immediately blame Hezbollah. Hezbollah has not claimed a cross-border attack since the agreement.

Israeli strikes over southern Lebanon continued, especially in and around the battered cities of Tyre and Nabatiyeh. Two overnight strikes near Tyre, a coastal city, killed four Syrians and two Palestinians.

Israel warned the Christian neighborhoods in Tyre that Hezbollah members were among them. Many Lebanese Shiite Muslims fled to those areas in recent days because they were spared from the aerial bombardment along the Mediterranean coast.

After the warning, the Lebanese army deployed to the Christian district of Tyre in an effort to prevent Israeli attacks there and to show that Hezbollah has no armed presence in the area.

Israel launched an invasion of southern Lebanon days after the latest war was sparked on March 2, when Iran-backed Hezbollah fired rockets toward northern Israel in solidarity with Iran. Israeli troops have pushed deeper into Lebanon over the past week, as Hezbollah continues to claim rocket and drone attacks.

The latest round of fighting between Israel and Hezbollah has killed 3,468 people in Lebanon and displaced 1.2 million people. According to Netanyahu’s office, at least 27 Israeli soldiers and a defense contractor have been killed in or near southern Lebanon. Two civilians have also been killed in northern Israel.

Many residents of southern Lebanon remained in villages near the hostilities or returned to areas where strikes occurred after evacuation warnings.

The Al-Abdallah family returned to their home in Marwanieyh, which they left because they thought the village was unsafe following earlier strikes. A day later, two rockets hit the home, bringing down the three-story building and killing six family members, said the brother of Hassan Al-Abdallah, who was killed.

Ahmed Al-Abdallah, 13, was thrown away from the building by the force of the blasts and was the only member of his family to survive. His uncle, Eissa Al-Abdallah, said the boy has two broken legs and shrapnel wounds all over his body.

“What good is talking now? They are gone, and nothing will bring them back,” the uncle told The Associated Press in a phone call Tuesday. “This land costs blood.”

Boak reported from Washington.

This version has been updated to correct that the Iran war began at the end of February, not March.

United States Ambassador to Israel Mike Huckabee, second from left, is joined by third from left: State Department Chief of Staff Dan Holler, Sr., State Department Counselor and Director, Office of Policy Planning Michael A. Needham and United States Ambassador to Lebanon Michel Issa, as they meet with Israeli Ambassador to the United States Yechiel Leiter and Lebanese Ambassador to the United States Nada Hamadeh, at the State Department, Tuesday, June 2, 2026, in Washington. (AP Photo/Rod Lamkey, Jr.)

Israeli troops gather on the border with Lebanon in northern Israel, Tuesday, June 2, 2026. (AP Photo/Ariel Schalit)

A nurse treats an injured man at the damaged Jabal Amel Hospital, following Monday's Israeli airstrike that was hit a nearby building, in the southern port city of Tyre, Lebanon, Tuesday, June 2, 2026. (AP Photo/Mohammed Zaatari)

A man removes debris of a building that was hit Monday in an Israeli airstrike in the southern port city of Tyre, Lebanon, Tuesday, June 2, 2026. (AP Photo/Mohammed Zaatari)

Rescue workers use an excavator, as they search for victims under the rubble of a building that was hit Monday in an Israeli airstrike in the southern port city of Tyre, Lebanon, Tuesday, June 2, 2026. (AP Photo/Mohammed Zaatari)

United States Ambassador to Israel Mike Huckabee, left, is joined by second from left: State Department Chief of Staff Dan Holler, Sr., State Department Counselor and Director, Office of Policy Planning Michael A. Needham and United States Ambassador to Lebanon Michel Issa, as they meet with Israeli Ambassador to the United States Yechiel Leiter and Lebanese Ambassador to the United States Nada Hamadeh, at the State Department, Tuesday, June 2, 2026, in Washington. (AP Photo/Rod Lamkey, Jr.)

Smoke rises from an Israeli airstrike that hit Burj al-Shamali village near the southern port city of Tyre, Lebanon, Tuesday, June 2, 2026. (AP Photo/Mohammed Zaatari)