UMC Starts Silicon Photonics Wafer Production in Singapore, Targets AI Data Centers by 2027
Updated
Updated · CNBC · Jul 14
UMC Starts Silicon Photonics Wafer Production in Singapore, Targets AI Data Centers by 2027
3 articles · Updated · CNBC · Jul 14
Summary
UMC said its Singapore fab has begun its first mass production of silicon photonics wafers, marking the Taiwanese chipmaker’s entry into volume output for AI and hyperscaler data-center interconnects.
The platform was brought from development to production readiness in 18 months with Singapore-based SILITH Technology, as demand rises for faster optical links that move data at ultra-high speeds.
UMC also plans to open its own 12-inch silicon photonics platform to customer product development by 2027, extending the Singapore operation’s role in next-generation AI infrastructure.
The launch comes as Citi forecasts UMC’s second-quarter 2026 sales will rise 13% quarter on quarter; June revenue already climbed 22.85% year on year to NT$23.12 billion.
Singapore is becoming a bigger semiconductor hub for Taiwanese firms, with peers including King Yuan and TSMC-backed Vanguard, which recently joined NXP on a $7.8 billion plant.
As chipmakers race to build AI's data highways, can UMC's Singapore bet truly challenge TSMC's photonics dominance?
With global chip giants flocking to Singapore, is it becoming the new chokepoint in the world's AI supply chain?
UMC Achieves Mass Production of Silicon Photonics Wafers in Singapore, Accelerating AI Data Center Infrastructure
Overview
UMC and SILITH Technology have achieved mass production of silicon photonics wafers at UMC’s 12-inch facility in Singapore, marking a major milestone for the industry. This collaboration accelerates high-volume manufacturing of silicon photonics, a technology that enables ultra-high-speed data transmission and is essential for AI infrastructure. The growing demand for faster optical communication and increasing data traffic are driving substantial market growth. By delivering these advanced wafers, UMC is helping to meet the escalating needs of AI data centers, positioning itself as a key player in the rapidly expanding silicon photonics market.