Interview: MicroLED and SiPh eye 3.2T AI data race

The AI compute arms race is pushing optical interconnects past the tipping point where copper can no longer compete. Taiwan, China’s LED makers leveraging Micro LED for 3.2T+ optical links are engaging in a forced technological leap rather than organic growth. Upstream GaN epitaxy and silicon photonics integration face yield bottlenecks, while downstream packaging must overhaul thermal management and alignment tolerances—spiking system-level costs. With U.S. export controls already covering advanced optical modules, inclusion of Micro LED in expanded entity lists could trigger urgent supply chain localization. Japan and South Korea may forge exclusive ecosystems with U.S. partners, while Mainland China could deploy national funds to vertically integrate midstream capabilities. Within 18 months, the market will ruthlessly filter players: only those with full-stack control and geopolitical neutrality will survive the scale-up crucible.