AI computing power is driving data transmission bandwidth demand to double every two years, pushing copper interconnects to their physical limits. An increasing number of wafer foundries are turning to silicon photonics as the answer, and the technology is rapidly moving from laboratories to semiconductor production lines.
UMC announced that its Singapore 12-inch fab has delivered its first batch of mass-produced silicon photonics wafers. TSMC’s COUPE silicon photonics integration platform has entered the production stage, using SoIC technology to achieve 3D stacking of electronic and photonic chips for improved bandwidth density and power efficiency.
Tower Semiconductor has announced a major expansion plan for silicon photonics in Japan, including transforming its Arai facility into a 12-inch platform. GlobalFoundries has chosen an acquisition-driven strategy, buying Singapore-based Advanced Micro Foundry in 2025 and integrating its capabilities into the Fotonix platform for co-packaged optics applications.
In China, CanSemi has completed construction of a 12-inch silicon photonics production line covering nodes from 90nm to 65nm, with plans to advance toward 45nm.
Foundries are investing for three key reasons: silicon photonics can leverage existing CMOS manufacturing for cost advantages; it complements advanced packaging technologies like CoWoS and SoIC; and it strengthens foundries’ influence across the semiconductor value chain as optical-electronic integration accelerates. Despite rapid progress, challenges remain in heterogeneous integration with III-V materials for light sources and competing technology paths.
