Hongkang ramps silicon photonics testing investment with first system due in August

Hongkang’s accelerated investment in silicon photonics testing signals intensifying demand from AI and data centers for high-bandwidth interconnects. This move pressures foundries to improve optoelectronic integration yields and forces OSATs to restructure toward electro-optical co-packaging. Amid tightening U.S.-EU export controls on semiconductor tools, reliance on foreign-sourced test equipment could inflate operational costs by over 15%, exposing supply chain vulnerabilities. Competing Taiwanese OSATs like KYEC and Sigurd may respond by either differentiating services or forming alliances to counter Hongkang’s early standard-setting advantage. Over the next 18 months, as co-packaged optics (CPO) enters volume ramp, firms with integrated electro-optical test capabilities will command pricing power—while laggards risk exclusion from the AI chip ecosystem’s core tier.