《TAIPEI TIMES》Taiwan eyes silicon photonics as next big tech leap
Taiwan's Ministry of Economic Affairs announced plans to position the island as a leader in silicon photonics, a technology critical for advancing AI computing power. The ministry stated that Taiwan's existing semiconductor ecosystem, which accounts for over half of the global outsourced semiconductor assembly and testing market and more than 90 percent of advanced chip manufacturing (7nm and below), provides a strong foundation. Silicon photonics replaces traditional copper wiring with optical signals, reducing power consumption by 30 to 50 percent. This initiative is part of the government's New 10 Major AI Infrastructure Projects and has already seen Nvidia Corp invest US$4 billion in the technology. A Silicon Photonics Industry Alliance was established in 2024, including major players like TSMC, ASE Technology Holding, MediaTek, and Hon Hai Precision Industry, to ensure Taiwan controls the supply chain.
Taiwan is making a calculated move to dominate silicon photonics, a technology that directly addresses AI computing bottlenecks. The government's New 10 Major AI Infrastructure Projects and the formation of the Silicon Photonics Industry Alliance in 2024, involving TSMC and MediaTek, show a clear intent to leverage existing semiconductor strengths. This is not merely an R&D push; it is a strategic effort to control a critical future supply chain, especially in copackaged optics (CPO), which is vital for overcoming bandwidth limitations in high-performance computing. The island's deep expertise in advanced semiconductor manufacturing (over 90 percent of global 7nm and below capacity) gives it a significant advantage. The technology's ability to cut power consumption by 30 to 50 percent while boosting data transmission is a direct response to the energy demands of scaling AI. The US$4 billion investment by Nvidia underscores the global recognition of silicon photonics' importance, but Taiwan's challenge will be to translate its manufacturing prowess into leading-edge CPO product development and market share against established global players.
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