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Taiwan prioritizes silicon photonics in new national AI strategy

Monday, December 22, 2025 at 01:12 AM

Taiwan's President Lai has officially included silicon photonics as a priority in the 'Ten Projects for AI' national strategy. This initiative aims to consolidate national resources to advance co-packaged optics (CPO) and other key AI infrastructure technologies. A recent industry roundtable brought together government officials and major semiconductor firms to discuss the development of a local CPO-AI ecosystem.

Context

Taiwan President Lai Ching-te has officially designated silicon photonics as a central pillar of the nation’s new "Ten Projects for AI" strategy. This initiative focuses national resources on Co-Packaged Optics (CPO) to overcome critical data transmission bottlenecks in AI infrastructure. By integrating optical components directly into chip packaging, the strategy aims to reduce energy consumption by roughly 30% while dramatically increasing bandwidth for next-generation data centers. The move solidifies the leadership of TSMC, ASE, and United Microelectronics Corporation, which are collaborating via a new dedicated ecosystem roundtable to standardize CPO technology. TSMC is currently accelerating its proprietary COUPE platform, aiming for high-volume production by 2026 to meet soaring demand for AI accelerators. This government-backed roadmap reinforces Taiwan’s competitive moat as the global silicon photonics market is projected to grow at a compound annual rate of over 40% through 2030.

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