As AI data centers hit a transmission wall, GlobalFoundries pushes into silicon photonics

The transmission bottleneck in AI data centers is accelerating the industrialization of silicon photonics. GlobalFoundries' move signals a paradigm shift from traditional copper to optical interconnects, directly impacting upstream sectors such as optical chips, packaging, and system integration. This technological transition forces supply chains to restructure, especially in critical materials and equipment, increasing compliance costs and supply chain risks. Major players like NVIDIA, AMD, and Intel are expected to rapidly launch silicon photonics product lines within six months, intensifying competitive dynamics. In the long term, silicon photonics will become a core enabler for AI compute infrastructure, with the global market projected to exceed $10 billion by 2025, driving deeper integration between semiconductor manufacturing and system design, and establishing new technological barriers.