2025-10-29
Along with the rapid growth of Generative AI (GAI) and High-Performance Computing (HPC), global demand for high-speed data transmission keeps soaring. Traditional electrical signal transmission is limited by energy consumption and distance constraints, creating a bottleneck in the massive data flow generated during AI model training. Combining Silicon photonics technology with mature mass production and silicon processes, which feature high-speed and low-latency optical signals, has been considered the solution for the next generation. According to the forecast of MarketsandMarkets, the global silicon photonics market is expected to grow up to USD 9.65 billion in 2030, compared to USD 2.65 billion in 2025, indicating that the industry has entered a period of rapid expansion with a compound annual growth rate (CAGR) of nearly 30%.
The development of Silicon Photonics and Co-Packaged Optics (CPO) is expediting the network upgrades of data centers and supercomputers. U.S.-based Broadcom will launch its third-generation 200G/lane CPO optical engine in 2025, moving toward the generations of 1.6T and 3.2T. NVIDIA, at the Hot Chips technical forum, unveiled its Graphics Processing Unit (GPU) optical interconnection blueprint, planning to introduce optical connectivity into network and switching platforms — underscoring its importance for future AI data centers. The Optical Internetworking Forum (OIF) has accomplished multiple interoperability demonstrations of high-speed interfaces, providing unified standards for the industry and reducing the risks of adopting technologies from different suppliers.
An examination of development trends across regions include:
Overall, the global silicon photonics industry has formed a diversified landscape characterized by “U.S. leadership in technology, Europe’s ecosystem-oriented approach, and Japan’s application-driven focus.”
Major international corporations are not only expanding their presence in their respective markets — with the advancement of silicon photonics technology, Taiwan has become a key link in the global supply chain. The development of Taiwan’s silicon photonics industry has now begun to take shape, demonstrating three major strengths: technological breakthroughs, industrial clustering, and strong policy support.
Technological Breakthroughs
At SEMICON Taiwan 2025, TSMC (Taiwan Semiconductor Manufacturing Company) unveiled its COUPE platform for the first time, which uses System on Integrated Chips (SoIC) heterogeneous integration technology to combine electronic and photonic dies directly. TSMC showcased a 200G Micro Ring Resonator Modulator (MRM) and Wavelength Division Multiplexing (WDM) module, which are expected to be integrated into CoWoS (Chip-on-Wafer-on-Substrate) advanced packaging by 2026 — a major step toward CPO commercialization. This aligns with NVIDIA’s CPO roadmap, further highlighting Taiwan’s critical role in the global HPC supply chain.
Meanwhile, the ITRI (Industrial Technology Research Institute) introduced Taiwan’s first 1.6 Tbps silicon photonic optical engine, collaborating with ASE (Advanced Semiconductor Engineering, Inc.) to establish an integrated one-stop resource of industry platform for design, manufacturing, and verification, and jointly promote the development of the silicon photonics industry.
Industrial Clustering
ASE and SPIL (Siliconware Precision Industries) are actively developing CPO packaging technologies. At the same time, Sigurd Microelectronics focuses on testing solutions for silicon photonics and CPO — filling the critical measurement and verification gap. Accton Technology has adopted silicon photonics in its switch products, and optical transceiver manufacturers such as LandMark Optoelectronics, Browave Corporation, and Fiber Optic Communications (FOCI) continue expanding capacity, forming a complete supply chain. U.S. startup NLM Photonics has chosen to leverage Taiwan’s wafer manufacturing and testing ecosystem to accelerate the commercialization of advanced optical materials. At the same time, Taiwan’s startup Rayleigh Vision Intelligence introduced a low-power optical engine solution and plans to collaborate with local Outsourced Semiconductor Assembly and Testing (OSAT) partners for mass production — reflecting Taiwan’s dual advantage in international collaboration and domestic innovation.
Policy Promotion
In 2025, the Executive Yuan launched the “Ten AI Initiatives Promotion Plan”, designating silicon photonics as one of its three core technologies to be supported by cross-ministerial R&D funding. Taiwan is poised to expand its influence within the global industry value chain through international cooperation and standardization platforms, as SEMI Silicon Photonics Industry Alliance now includes over 100 domestic and international companies spanning wafers, materials, packaging, modules, and systems.
Silicon photonics and CPO have progressed from technical exploration to industrial implementation, with the global market expanding rapidly at an annual compound rate of nearly 30%. The SEMICON Taiwan 2025 forums and exhibitions further underscore silicon photonics’ strategic importance in the semiconductor industry. Leveraging its comprehensive manufacturing and advanced packaging capabilities — combined with R&D investments from ITRI, ASE, and others, as well as supportive government policies and global partnerships — Taiwan is steadily building a complete silicon photonics ecosystem. Looking ahead, as international collaborations deepen and commercialization accelerates, Taiwan is poised to become a global hub for silicon photonics, further strengthening its critical supply chain position in AI and HPC.
Source： Industrial Technology Research Institute (ITRI) Industry Service Center Research Team
MOEA
MOEA DOIP
MOEA YouTube
Let's Juiker Together
