Taiwan Foundry Eyes Photonic Chips for AI Data
Reported orders would expand volume silicon photonics production, with full capacity targeted for 2030.
Updated on Nov. 2, 2026 in Semiconductors
Taiwanese foundry UMC reportedly secured photonic integrated circuit orders from Zhongji Innolight and Tencent-backed SILITH, with initial orders potentially totaling up to 10,000 wafers. The development is reported rather than confirmed by UMC, which declined to comment on specific customers or orders, so it should be treated as announced-via-reporting, not a shipped product.
Why it matters
Silicon photonics chips move data between servers and networking gear using light rather than electrical signals, and demand for them is growing with AI data center buildouts. UMC's reported move signals that a mainstream Taiwanese foundry is positioning to supply this optical interconnect market at volume.
The reported 10,000-wafer order and 7x price premium over conventional CMOS come from press reporting, not UMC's own filings. UMC's stated roadmap targets 300G per lane in the near term and 400G per lane eventually, but no independent benchmark of these platforms was provided.
The players
UMC
Taiwanese semiconductor foundry expanding its silicon photonics production across Singapore and Taiwan.
Zhongji Innolight
Leading global supplier of data center optical transceiver modules.
SILITH
Tencent-backed photonics company with cumulative shipments of 100G and 200G per-channel PICs exceeding 8 million units.
The details
Photonic integrated circuits (PICs) are chips that generate, guide and detect light on a silicon substrate, letting data travel as light pulses rather than electrical signals. UMC's roadmap relies on hybrid bonding, a technique that joins different chip layers directly at the metal level, and chip-to-wafer integration, which attaches individually tested dies to a processed wafer. Production of the reported orders is expected at UMC's Singapore facility, with additional orders possible.
Timeline
Equipment installation at new UMC facilities is expected to begin in late 2028.
Full PIC capacity is targeted for 2030.
The Tech Race
Silicon photonics is becoming a contest among foundries and module makers to supply optical interconnects for AI data centers. UMC's reported orders and its 1.6T transceiver validation with multiple hyperscalers place it alongside established optical module suppliers in this race.
Faster optical links inside data centers would affect cloud services and AI workloads, though no availability or pricing has been announced for UMC's products. Timelines are uncertain, and the reported orders have not been confirmed by UMC.
The takeaway
Watch for UMC confirming or disputing the reported Zhongji Innolight and SILITH orders, and for progress on the Singapore P4 expansion. Late 2028 equipment installation is the next concrete milestone to track.
Further reading
For background on the chip manufacturing behind this news, see the Semiconductors section.
