The National Development Council is promoting the “AI New Ten Major Construction Projects,” which aims to strategically deploy silicon photonics co-packaged optics (CPO) and ultra-high-speed, low-power photonic transmission technologies to enhance high-performance AI computing.
Shin-Horng Chen, Vice President of the Chung-Hua Institution for Economic Research (CIER), notes that silicon photonics is a critical technology for AI and high-performance computing (HPC). Beyond applications in advanced packaging and data centers, this technology holds tremendous potential in optical sensing, medical applications, biophotonics, and quantum computing, which presents extensive opportunities for industry chain participation.
Chen-Chun Lin, an analyst at the CIER, emphasizes that Taiwan should establish early connections with international end-application system manufacturers and collaborate with data center operators, network equipment providers, and sensing application companies to conduct system-level integration and application verification. By building a domestic ecosystem driven by demand and focusing on Optical I/O and CPO, Taiwan can integrate electronic design automation (EDA), manufacturing processes, packaging, and testing, while encouraging participation from small and medium-sized enterprises to enhance overall competitiveness.
The National Development Council projects that silicon photonics packaging will substantially improve transmission efficiency by replacing copper with light. Taiwan’s technology is expected to achieve export capability by the end of this year, with the potential to maintain a leading advantage for 10 to 20 years, thereby strengthening the resilience of its semiconductor industry. The sector is projected to reach its peak in development by 2027.
Analyst Chen-Chun Lin notes that the United States has maintained a leading position in silicon photonics research. With investments concentrated in quantum photonics and data center optical interconnects, it is evident that global technology deployment is intensifying rapidly. Taiwan should leverage Europe’s experience in developing biological applications and automotive photonics technology, and actively pursue prospective innovations to ensure that its packaging and testing industry continues to lead globally.
Author: CIER Editorial Team
Date: October 7, 2025