The explosive growth in data processing at artificial intelligence (AI) data centers has made efficient power consumption and data transmission critical challenges. As a result, technologies such as silicon photonics and co-packaged optics (CPO) are emerging as key components in the next generation of the semiconductor industry.
These technologies will be central to discussions at Semicon Taiwan 2026, Asia's largest semiconductor exhibition, which opens on August 31 under the theme "Changing the Future." According to the International Semiconductor Equipment and Materials Institute (SEMI), the technology forum began on the same day, with the main exhibition running from September 2 to 4 at the Nangang Exhibition Center in Taipei.
SEMI has indicated that this year's event will focus on silicon photonics and CPO. Silicon photonics uses light instead of electricity to transmit data, while CPO integrates semiconductor and optical communication components into a single package. Both technologies are recognized for their potential to enhance communication speeds and reduce power consumption in data centers, making them vital for the future of AI data centers. SEMI anticipates that this year will mark a significant turning point for the large-scale adoption of silicon photonics.
At the technology forum that began on August 31, silicon photonics and CPO were key topics. The forum, themed "Designing Optical Communication Infrastructure for Large-Scale AI Clusters," attracted global industry stakeholders involved in system architecture, data transmission technology, and advanced manufacturing within the silicon photonics ecosystem. Shih Kuo-chin, Vice President of Advanced Packaging Technology Development at TSMC, and Hung Zhi-bin, Vice President of R&D at ASE, served as forum chairs.
Discussions focused on strategies for transitioning silicon photonics technology from research and development to large-scale production and commercialization.
Notably, CPO is moving beyond the research and development phase, with actual product production and shipments beginning, marking its entry into a full commercialization stage.
TSMC, the world's largest foundry, plans to expand its silicon photonics-based optical packaging platform, "COUPE," and its CPO solutions implemented on substrates, starting production of related products this year.
The Taipei Times reported, citing a TrendForce report, that TSMC, NVIDIA, and Broadcom are among companies beginning production of CPO-related products, with UMC and GlobalWafers also joining the fray, indicating that the CPO industry is entering a commercialization phase.
This year's Semicon Taiwan is expected to be the largest ever, coinciding with a surge in global demand for AI semiconductors. According to SEMI, over 1,300 companies from 65 countries will participate, setting up 4,300 booths, with attendance expected to exceed 100,000.
Major semiconductor and AI companies, as well as cloud service providers (CSPs) such as Google, Microsoft, NVIDIA, AMD, MediaTek, and Foxconn, will be in attendance. Amin Vahdat, Senior Vice President and CTO of Google AI and Infrastructure, will deliver a keynote address at Semicon Taiwan, outlining the blueprint for next-generation AI infrastructure encompassing custom chips and data centers.
Exhibits will also feature 18 national pavilions, including those from major semiconductor countries such as Germany, the UK, France, Japan, and South Korea, with a total of 220 booths dedicated to these pavilions.
Additionally, the startup exhibition space has doubled compared to last year. Sixteen startups in advanced processes, AI computing, silicon photonics, testing and measurement, smart manufacturing, and quantum computing will participate, focusing on technology commercialization and securing investments.
* This article has been translated by AI.
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