The world's largest foundry, TSMC, along with over 30 major Taiwanese companies, is working to establish a Silicon Photonics Industry Alliance. As the importance of silicon photonics grows with the rise of artificial intelligence (AI), Taiwan aims to secure leadership in next-generation semiconductor technology.
On September 6, Taiwan's Ministry of Economic Affairs announced that TSMC, ASE, MediaTek, Foxconn, and other key Taiwanese firms are collaborating to form the 'Silicon Photonics Industry Alliance,' as reported by local media on September 7.
The ministry explained that the alliance aims to jointly develop Co-Packaged Optics (CPO), a core technology of silicon photonics, to complete the domestic supply chain and secure the capability to produce related technologies in Taiwan.
Silicon photonics is a technology that transmits data using light instead of electrical signals by implementing optical circuits on silicon substrates. CPO, in particular, integrates optical communication components with semiconductors into a single package, enhancing data transmission speed and energy efficiency. This technology is considered crucial for the commercialization of silicon photonics and is emerging as a key technology in the AI semiconductor industry. It was a major topic at the 'Semicon Taiwan 2026' event held in Taipei from September 2 to 4.
TSMC is set to begin mass production of CPO by the end of this year, with companies like NVIDIA and Broadcom also entering the CPO product market. Other related firms, including UMC and GlobalWafers, are joining the competition to develop relevant technologies, intensifying the race for CPO commercialization.
The Ministry of Economic Affairs emphasized that Taiwan possesses a complete semiconductor ecosystem, holding 90% of the global market for advanced processes below 7 nanometers and over 50% of the global semiconductor backend market, giving it a competitive edge in silicon photonics technology.
Philippe Absil, vice president of the world's largest semiconductor research institute IMEC, stated at a forum in Taipei last month, "The pace of CPO adoption is faster than initially expected, and I believe this growth is being driven here in Taiwan."
In fact, the Taiwanese government has included silicon photonics technology in its 'New 10 Major Construction' plan established last year, alongside high-performance computing, quantum technology, and smart robotics, accelerating the development of a silicon photonics ecosystem through collaboration among industry, academia, and research institutions.
* This article has been translated by AI.
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