Photonic Chip Market to Reach USD 9.30 Billion by 2032, Growing at 12.9% CAGR, Says MarketsandMarkets™ - GlobeNewswire

The global photonic chip market was valued at approximately USD 4.00 billion in 2025 and is projected to reach USD 9.30 billion by 2032, growing at a compound annual growth rate (CAGR) of 12.9% from 2... Read original →

The photonic chip market is experiencing rapid expansion, driven by the insatiable bandwidth demands of hyperscale AI data centers and the physical limitations of electrical interconnects. Silicon photonics, as a CMOS-compatible platform, is reshaping optical interconnect architectures, pushing Co-Packaged Optics (CPO) into mainstream adoption. Upstream material suppliers face supply chain concentration risks, while midstream chip designers like Intel, Ayar Labs, and HyperLight are accelerating innovation. Downstream players in telecom and AI infrastructure are rapidly integrating silicon photonic modules. Policy-wise, the U.S., EU, Japan, and China are reinforcing domestic supply chains through subsidies, yet immature EDA tools and complex manufacturing remain bottlenecks. Over the next 18 months, photonic chips will shift from edge to core data center applications, establishing new technical barriers and market dynamics.