Although silicon photonics technology has been developed for more than 20 years, it is only in the past two years that the huge data transmission demand driven by the rise of generative AI has been explored and emphasized, and therefore the technology and market for it and its derived co-encapsulated optics have been grasped by the major players in Europe and the United States. In the past, most Taiwanese companies were not too concerned about the uncommercialized forward-looking technology, so only a few Taiwanese companies, such as NanoPhotonics, Lenovo, TSMC, Sun Micron, Enerchip, and Siwei, have launched silicon photonics and co-encapsulated optics-related products and services. Fortunately, Taiwan has the advantage of a well-developed semiconductor and optoelectronics industry chain, and is expected to establish a co-encapsulated optics industry chain soon with the vigorous development of the market. Participating vendors such as: (1). Epitaxial of the new photoelectric; (2). (2) The packaging and testing of Taiwan's StarTek, Silicon Power, and Signal Core; (3). Test equipment of Wang Si; (4). Optical Module: Shang Chuan and Huaxing Optical; (5). Switch assembly companies such as Chi-Pong and Mingtai. Among the above companies, TSMC and Sun Micron are the most competitive in the market, and the progress of their co-packaging optical technology is described as follows.