Samsung Electronics is actively developing silicon photonics technology, often referred to as “optical semiconductors,” in collaboration with Broadcom.
Silicon photonics, which converts semiconductor data transmission from electrical signals to light, is considered a key technology for next-generation foundry processes.
This innovation has the potential to enhance data signal processing speeds by more than tenfold. TSMC, the world’s leading foundry, plans to commercialize this technology in the second half of this year for NVIDIA’s AI accelerators.
Samsung and Broadcom Aim for Commercialization Within Two Years
According to Korean media, Chosun Biz, Samsung Electronics and Broadcom are working towards the commercialization of silicon photonics technology within the next two years.
While Samsung is also in discussions with NVIDIA and other companies, its collaboration with Broadcom appears to be the most advanced in terms of commercialization progress.
Based on current status, TSMC initiated R&D on silicon photonics ahead of Samsung.
However, Broadcom proposed joint development, prompting Samsung to quickly respond since early last year.
Currently, Samsung’s collaboration with Broadcom is progressing at the fastest pace.
Samsung aims to accelerate the development of next-generation foundry processes through its strong partnership with Broadcom. Broadcom, a leader in semiconductor technology for wireless and optical communication, generates approximately 30% of its total revenue from semiconductors for wireless communication devices and around 10% from semiconductors for optical communication equipment.
The company plans to leverage its collaboration with Samsung to apply silicon photonics technology in the mass production of next-generation ASICs and optical communication semiconductors.
Strategic Move to Narrow the Gap with TSMC
As Samsung faces an increasing market share gap with TSMC, the company is focusing on maintaining its technological competitiveness in advanced processes.
With fewer major orders from global tech giants, Samsung has no choice but to invest heavily in its collaboration with Broadcom.
TSMC has secured large-scale orders from major fabless semiconductor companies such as Apple, NVIDIA, AMD, and Qualcomm, giving it a significant advantage in both advanced process competition and next-generation technology development.
Samsung, which lost market ground to TSMC due to yield instability in its 3-nm process, is now determined to stabilize and improve the performance of its 2nm process.
The company also aims to rapidly catch up with TSMC in next-generation technologies such as silicon photonics.
As foundry processes move below 3nm, simply reducing circuit line widths is no longer the best approach. In addition to Gate-All-Around (GAA) and Backside Power Delivery Network (BSPDN) technologies, next-generation processes that maximize power efficiency and signal processing speeds—such as silicon photonics—will determine the future success of foundry businesses, particularly in supporting AI technology.
TSMC Maintains a Lead in Silicon Photonics Commercialization
Despite Samsung’s rapid progress, it still lags behind TSMC by approximately one to two years in silicon photonics commercialization.
TSMC is set to complete its silicon photonics production line in Taiwan by June this year and plans to integrate the technology into NVIDIA’s AI accelerator manufacturing no later than the first half of next year.
NVIDIA previously indicated its support for TSMC’s silicon photonics technology at the International Electron Devices Meeting (IEDM) in December 2024, where it unveiled its latest GPU technology for AI applications.
With TSMC on track for early commercialization, Samsung must move swiftly to close the gap and establish itself as a competitive force in the silicon photonics market.
As the foundry industry moves toward sub-3nm processes, next-generation technologies like silicon photonics will play a crucial role in shaping the future of semiconductor manufacturing.
Samsung’s partnership with Broadcom marks a significant step in that direction, but the race against TSMC remains intense.
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