AI data center demand is accelerating the shift to faster optical interconnects, putting transmission speed, power efficiency, and packaging integration at the center of next-generation optical communications. Taiwan’s Ligitek Electronics and Liverage Technology are working with the Industrial Technology Research Institute (ITRI) and Dutch photonic chip packaging specialist Phix on a cross-border silicon photonics program targeting phased milestones of 1.6T DR8 by the end of 2026 and 3.2T product development by the end of 2027.

Driven by the shift from copper to optical interconnects, silicon photonics (SiPh) and co-packaged optics (CPO) are moving rapidly toward mainstream adoption, fueling demand across the broader semiconductor equipment supply chain. Highlighting the trend at SEMICON Taiwan 2026, Hiwin Mikrosystem, in collaboration with the Hiwin Group, unveiled its next-generation precision positioning platform for SiPh inspection. Spurred by accelerating market adoption, order visibility for the platform now extends into the second quarter of 2027.

Acer Chairman and CEO Jason Chen said Taiwan is not only a global hub for AI hardware manufacturing and technology, but also an important source of capital, as many firms issue bonds to raise funds. He said Acer has already issued bonds worth NT$20 billion (US$630.7 million), adding that “Taiwan’s money” is not only benefiting the local market but is spreading around the world.

Tokyo Electron’s Taiwan president said AI is pushing semiconductor demand into new areas, with advanced packaging, DRAM, high-bandwidth memory, and NAND flash all gaining momentum. He said Taiwan remains central to the industry’s supply chain, and TEL plans to deepen local technology, service, and research ties.