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[SITUATION] · [QUIET] · [TECHNOLOGY]

7 clusters · 20 sources · 36 days · First seen · Last updated

Expansion of semiconductor packaging and AI optical tech

Overview

The semiconductor industry is expanding advanced packaging and optical technologies to meet AI and high-performance computing demands. In Taiwan, TSMC is advancing silicon photonics to address the ‘I/O Wall,’ utilizing its COUPE optical engine to integrate electronic and photonic integrated circuits. While mass production of Co-Packaged Optics (CPO) is expected in the second half of 2026, the industry faces supply chain bottlenecks in laser sources and connectors.

Market forecasts for optical transceiver modules have seen massive upward revisions due to the transition toward rack-scale AI servers and custom ASIC servers. Goldman Sachs predicts the global market will reach $148.5 billion by 2028, driven by the adoption of 800G, 1.6T, and 3.2T modules. Silicon photonics is expected to see significant penetration, potentially reaching 80% in the 1.6T and 3.2T segments by 2028 due to cost advantages.

Supporting the materials layer, French manufacturer Soitec is managing a surge in demand for silicon substrates used in AI data-center optics. CEO Laurent Remont indicated that revenue from photonics-SOI is expected to more than double this financial year, surpassing $200 million. UBS estimates Soitec controls approximately 95% of this market.

In the CPO sector, Ayar Labs has secured an additional $150 million in funding, bringing its total primary capital raised in 2026 to $650 million and its total outside funding to over $1 billion. Strategic investors include AMD, Intel, MediaTek, NVIDIA, and Wiwynn. The company plans to use the capital to transition to high-volume manufacturing for solutions like its TeraPHY™ Optical Engine. To expand global engineering capacity, Ayar Labs also announced the opening of a new Bengaluru Design Centre in India, complementing its existing teams in the United States and Hsinchu, Taiwan.

Entities

Nvidia · AMD · Intel · Goldman Sachs · Yunlin County

Timeline

  1. [TECHNOLOGY] 4 sources
    Ayar Labs secures $150M in additional funding for AI optical technology

    Ayar Labs has raised an additional $150 million in 2026, totaling $650 million this year, to scale manufacturing of optical interconnect technologies for AI data centers.

  2. [BUSINESS] 2 sources
    Goldman Sachs raises global optical module market forecasts amid AI demand

    Goldman Sachs has sharply raised global optical module market forecasts, driven by AI rack-scale server expansion and a shift toward 1.6T and 3.2T high-speed specifications and silicon photonics.

  3. [TECHNOLOGY] 3 sources
    Soitec secures AI optics demand with surging photonics wafer orders

    Soitec is securing multi-year commitments and deposits to meet surging demand for silicon photonics wafers used in AI data-center optical networking.

  4. [BUSINESS] 2 sources
    Optical component makers expand capacity for AI data centers

    Optical transceiver manufacturers Applied Optoelectronics and Eoptolink Technology are expanding production and inventory to meet surging demand for AI data center infrastructure.

  5. [TECHNOLOGY] 2 sources
    Lumentum and Largan Precision expand AI optical component footprints

    Lumentum reports record $1 billion quarterly revenue driven by AI optical chip demand, while Taiwan's Largan Precision pivots toward Co-Packaged Optics (CPO) to capture semiconductor growth.

  6. [TECHNOLOGY] 4 sources
    Siliconware Precision and Intel expand advanced semiconductor packaging

    Siliconware Precision Industries is investing 100 billion TWD in a new CoWoS-capable plant in Taiwan, while Intel advances its Foveros 3D and EMIB packaging technologies in the US to meet AI demand.

  7. [TECHNOLOGY] 4 sources
    TSMC's COUPE Platform and Veeco's LUMINA+ System Accelerate AI Data Center Optical Interconnects

    TSMC's COUPE CPO platform targets 2026 mass production but faces testing bottlenecks, while Veeco's LUMINA+ MOCVD system secures an order to boost InP laser output for AI data‑center transceivers.

Sources

arts-spectacles.com · blocktempo.com · compoundsemiconductor.net · cryptobriefing.com · digitalnewsasia.com · finance.technews.tw · it-boltwise.de · lightwaveonline.com · marketbusinessnews.com · mommygearest.com · newswire.telecomramblings.com · nextapple.com.sg · pingtungtimes.com.tw · pulse2.com · scmp.com · siliconangle.com · stocknews.com · tamers2021.hateblo.jp · techritual.com · tekedia.com

This summary has been updated 8 times: see revision history