Silicon Photonics Push Sends Broadcom and Samsung Stocks Surging

Recent developments in the artificial intelligence and high-performance computing sectors have driven a pressing need for faster interconnect technology in data centers. Within this context, optical interconnect technology emerges as a key solution to address electronic I/O performance bottlenecks. By leveraging silicon materials to manufacture optoelectronic devices, this technology combines the matured manufacturing process, cost-effectiveness, and high integration advantages of silicon with the superior speed and bandwidth of photonics.

According to TrendForce, Samsung Electronics and broadcom are collaborating to advance silicon photonics technology, aiming to bring this cutting-edge solution to market within the next two years. This partnership is significant, with Broadcom having established itself as a leader in wireless and optical chip technology, comprising 30% of its business in wireless chips and 10% in optical communication devices. Broadcom's previous collaborations with industry giants like tsmc further enhance its capabilities in this domain.

TSMC is also vigorously pursuing silicon photonics applications, having assembled a dedicated R&D team of approximately 200 experts focusing on the integration of silicon photonics in future chip technologies. TSMC executives suggest that an efficient silicon photonic integration system could potentially address the crucial issues of energy efficiency and AI computational power.

To achieve this goal, TSMC has proposed the Co-Packaged Optics (CPO) technology to closely integrate silicon photonic components with application-specific chips, covering cutting-edge process technologies from 45nm to 7nm. TSMC plans to deliver samples by the beginning of the year, initiate large-scale production in the latter half, and expand shipment volumes next year.

Meanwhile, Samsung is actively negotiating with other industry giants about potential collaborations in silicon photonics technology. However, its partnership with Broadcom is advancing with remarkable speed. Together, they aim to incorporate silicon photonics into the next generation of application-specific integrated circuits and optical communication devices to gain a competitive edge in future markets.