July 14, 2026 /SemiMedia/ — United Microelectronics Corporation has started producing advanced photonic chips in Singapore as demand grows for high-speed, power-efficient interconnects used in artificial intelligence data centers.

G.C. Hung, senior vice president at UMC, said silicon photonics and co-packaged optics are expected to become important growth drivers for the company over the next several years.

A key part of the program is the transition of photonic chip production from traditional 8-inch wafers to more advanced 12-inch wafers.

UMC said the use of 12-inch wafers, newer manufacturing equipment and improved processes can reduce optical loss while improving power efficiency, performance and production economics.

Singapore-based photonic chip developer Silith Technology will be the first major customer for UMC’s new production line. Silith’s customers include optical module suppliers Innolight and Coherent, which supply products to AI infrastructure customers including Nvidia and Google.

As next-generation AI data centers expand, data transmission between servers, accelerators and network switches is increasing rapidly. Interconnect bandwidth, power consumption and latency are becoming major constraints on system scaling.

Silicon photonics combines optical technology with silicon chip manufacturing, using light rather than electrical signals to transmit data. The technology can provide higher bandwidth, lower power consumption and longer transmission distances.

Potential applications include pluggable optical modules, optical engines and co-packaged optics systems.

In addition to its cooperation with Silith, UMC is working with Belgian research institute IMEC to build a photonic chip manufacturing platform. The company plans to make the technology available to more customers beginning in 2027.

UMC also plans to begin offering advanced packaging services in 2027, connecting photonic chips to interposers. Shortening the electrical path between optical components and processors can reduce signal loss and power consumption while increasing connection speed.

By 2028, UMC plans to launch an open platform to help customers develop different types of optical chips and silicon photonics technologies.

The company is also studying the use of thin-film lithium niobate chiplets in data centers. The material can support high-speed optical modulation, improve energy efficiency and reduce heat generation.

Singapore and Taiwan will serve as UMC’s main research, development and manufacturing bases for photonic chips and advanced packaging. The company has assigned more than 100 employees to the business and plans to expand its Singapore team over the next several years.

UMC said co-packaged optics will continue to develop, while demand for photonic chips used in pluggable optical modules is also growing rapidly. The two technologies are expected to coexist across different data center architectures.

Unlike TSMC, which focuses heavily on leading-edge process technologies, UMC mainly serves specialty and mature-node applications such as power management, microcontrollers, connectivity chips and sensors. Its customers include Qualcomm, Intel and Infineon.

AI infrastructure requires more than advanced processors. It also depends on power management, networking, control, sensing and optical communication chips. UMC’s move into 12-inch photonic chip production and advanced packaging could expand its role in the AI data center supply chain.

UMC previously announced that it would raise selected product prices from July because of higher material costs.