Silicon photonics foundries

Why the concentration exists

Silicon photonics foundries manufacture photonic integrated circuits that convert electrical signals into light for high-bandwidth data transmission. These facilities use modified CMOS manufacturing processes adapted for optical components rather than purely electronic ones. The process builds waveguides, modulators, and photodetectors directly onto silicon wafers using lithographic techniques borrowed from the semiconductor industry. This integration allows optical functions to be monolithically combined with electronic circuits on a single die. The resulting chips enable pluggable optical transceivers and co-packaged optics architectures essential for AI cluster networking.[1][2][7][10]

The manufacturing process requires precise integration of multiple specialized materials beyond standard silicon. Germanium is incorporated for photodetectors and to induce strain in heterojunction bipolar transistors. Silicon nitride serves as a passivation layer and diffusion barrier while also forming waveguide structures. Aluminum and copper metal traces connect the photonic components to electronic circuits. These material additions require dedicated process development and qualification cycles that can take years to complete.[7][8][20]

What the evidence shows

Who supplies it

TSMC, Samsung, and UMC are all developing silicon photonics capabilities for their foundry offerings. TSMC filed 50 patents related to core silicon photonics technology in the United States in 2024, roughly double Intel's 26 filings that year. Samsung plans to begin mass production of silicon photonics starting in 2028. UMC announced its first delivery of mass-produced silicon photonics wafers from its Singapore 12-inch fab on July 14, 2026. Silterra operates a 200mm silicon photonics fab in Malaysia with capacity expanded to handle up to 46,000 wafers per month.[3][11][12][14][16]

What it depends on, and what depends on it

GlobalFoundries offers its Fotonix platform at 90nm and 45nm process nodes with different capabilities at each generation. The 90WG process runs at Fab 9 while the more advanced 45CLO process operates at Fab 10. The 45CLO process is the only foundry photonics IC process capable of C-band, L-band, and O-band operation on a single die. This process can integrate active and passive components monolithically. GlobalFoundries has demonstrated 3D-stacked silicon photonics chips with standard logic chips, a capability no other foundry has achieved.[9][10][21]

The foundries produce optical chiplets delivering 1.6 to 3.2 terabits per second of bandwidth for data center interconnects. These components go into pluggable optical transceivers operating at 100, 200, and 400 gigabits per second per wavelength. The chips also enable co-packaged optics architectures where photonic dies are integrated directly with switch ASICs. TSMC's roadmap includes COUPE technology for pluggables followed by COUPE on substrate in a CoWoS co-packaged optics solution targeted for 2026. The technology supports both coherent transceivers for long-haul links and direct-detect transceivers for shorter connections.[2][9][15][17][21]

Where it sits in the stack

What would break it

Global production capacity for advanced optical chips is projected to increase by more than 80 percent year-over-year in 2026. Despite this expansion, capacity will still lag behind market demand by 5 to 15 percent according to industry estimates. The production capacity gap creates persistent pressure on lead times and pricing. NVIDIA has been aggressively pre-allocating capacity at electro-absorption modulated laser suppliers. This purchasing behavior has pushed lead times out past 2027 and triggered supply shortages across the industry.[4][5]

Tower Semiconductor announced plans to double its silicon photonics manufacturing capacity and triple it by the middle of 2026. The company operates 200mm silicon photonics wafer fabs in the United States and Israel alongside a 300mm facility. GlobalFoundries is investing an additional $3 billion for research and development on silicon photonics, advanced packaging, and gallium nitride. This brings total investment to $16 billion across its New York and Vermont facilities. Applied Materials and GlobalFoundries plan to establish waveguide fabrication at the Singapore facility for emerging photonics applications.[6][13][22]

UMC plans to make its own 12-inch silicon photonics platform available for customer product development in 2027. The company aims to debut an open silicon photonics platform by 2028 and begin offering advanced packaging services in 2027. Samsung's entry into mass production of silicon photonics in 2028 will add another major foundry to the supply base. ASE-USI is expanding its Hai Phong plant to achieve a monthly capacity of 100,000 units of 800G and 1.6T silicon photonic-based optical transceivers. These expansions could gradually ease the capacity constraints if demand growth moderates.[11][13][14]

What to watch

Tower Semiconductor targets tripling its silicon photonics capacity by mid-2026. UMC expects to begin offering its open silicon photonics platform by 2028. Samsung plans to start mass production of silicon photonics in 2028. These timelines suggest meaningful capacity additions remain two to three years away.[6][11][14]

GlobalFoundries announced plans on January 17, 2025 to create a new center for advanced packaging and testing within its New York facility. The overall investment in the New York Advanced Packaging and Photonics Center is expected to be $575 million. The U.S. Department of Commerce will provide up to $75 million in direct funding. New York state will provide up to $20 million in support. The center represents the first U.S.-based facility dedicated to silicon photonics packaging.[18][19][22]

Related nodes

Sources

1. imec-int.com
2. gf.com · 2026-03-02T19:06:39
3. lightcounting.com
4. eu.36kr.com
5. exoswan.com · 2026-04-06T16:57:20
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7. nature.com · 2024-01-25T00:00:00
8. sandia.gov · 2014
9. newsletter.semianalysis.com · 2022-03-09
10. newsletter.semianalysis.com
11. trendforce.com · 2026-07-14
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22. semiconductor-today.com · 30 June 2025