Silicon Photonics Market outlook in the coming 7 years

A new report by technology market research company Emergen Research has tagged the Photonics market to reach USD 4.62 Billion by 2027. This growth is based on a CAGR of 22.7%. The key drivers of this growth are cloud computing performance demands and swift increase in Internet bandwidth usage. In addition to that, huge interest in financial services requiring Internet based transactions and a rapidly growing market for live streaming and broadcasting services has added to the impetus to the rising growth trend.

The onset of 5G technology is catching on as more countries across the globe transition to high-capacity communication networks. Data centers and server hubs are going to be at the center of the capital investments as the transmitters (TOSA) and receivers (ROSA) used in the most advanced equipment rely heavily on silicon photonic chips.

The current telecommunication industry is reliant on sustained growth in interconnect capacities to meet the high data volume demand. Silicon photonics is the only technology that is fully compatible with the production line technologies available at specialized foundries such as ePIXfab, IME, AMF, Imec, CEA Leti, IHP and Ligentec. Furthermore, low carbon footprint, low operating costs, high reliability and low downtime are some other worthwhile benefits of adopting silicon photonics in large scale.

The recent worldwide shortage of semiconductor chips due to supply chain disruption due to COVID-19 and water shortage in Taiwan leading to TSMC extending delivery periods has shown that there is a need to increase domestic semiconductor production in many countries worldwide. High-growth developing nations in the Asia-Pacific region including China, India, Japan, South Korea and neighboring countries are bound to pay attention to this supply vacuum and pick up on the slack. SMIC in China is already seeing a large increase in orders despite several US embargoes on China related to the semiconductor industry.

SOURCES

https://www.novuslight.com

https://www.emergenresearch.com/industry-report/silicon-photonics-market

https://www.mordorintelligence.com/industry-reports/semiconductor-industry-landscape