Silicon photonics as a new area of progress and geopolitical rivalry

FACTA

China may be on the verge of a breakthrough that could significantly improve the efficiency of its semiconductor production. A laboratory based in Wuhan announced that it has successfully tested a chip based on silicon photonics, although specific details remain unknown. Current chips, which rely on the transmission of electrical signals, are nearing their physical limits. The optical signals used by silicon photonics overcome these limitations, enhancing the energy efficiency and computational capacity of chips—key factors in the AI era. The global silicon photonics market is valued at over 1 billion USD and is expected to reach nearly 8 billion USD by 2030.

FUTURA

With the ever-growing number of AI-related processes, digitalization, and research in quantum technologies, the successful production of silicon photonics chips would provide the manufacturing country with technological self-sufficiency and a significant edge over competitors. In the semiconductor sector, transitioning from traditional to photonics chips could lead to a major reshuffling of market power, as established competitors may lose their competitive edge. Progress in silicon photonics semiconductors could give China a potential lead not only in the economic and technological spheres but also improve its position in the ongoing geopolitical rivalry, where technological self-sufficiency and competitiveness play an increasingly dominant role.