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Hua Hong, China’s second-largest contract chipmaker, is aggressively expanding into silicon photonics.
It aims to capitalize on growing global demand from artificial intelligence infrastructure.
Chairman Bai Peng said capacity expansion in 2027 will significantly boost photonics.
Power-management chips are the other major area targeted for expanded capacity.
Hua Hong targets the light-speed links behind AI
China’s second-largest contract chipmaker, Hua Hong, plans to expand its silicon photonics business as demand for artificial intelligence infrastructure grows. The company says it will add significantly more capacity for the technology during its next major expansion, planned for 2027.
Silicon photonics combines silicon chips with light-based communication. In AI data centres, optical modules use light to move information between computing equipment. These links matter because AI systems must exchange large amounts of data quickly. Faster connections can help keep powerful processors working together.
Hua Hong says it wants to make a broad range of silicon-based components used in those modules. It also plans to expand capacity for power-management chips, which help control the electricity used by electronic systems.
A promising market, with practical hurdles
The move reflects a wider change in computing. As AI workloads grow, data centres need more ways to connect their machines. Optical links could help meet that need, especially where conventional electrical connections struggle to handle rising data traffic.
Still, a capacity plan does not guarantee widespread adoption. Building new production capability takes time and investment. Demand could also shift, while chipmakers must meet strict requirements for performance, reliability and cost. Hua Hong’s expansion will therefore depend on whether customers adopt optical modules at scale.
For ordinary people, these components may remain out of sight. Yet they help support the services people use for work, learning and communication. If silicon photonics can make AI infrastructure faster and more efficient, it may strengthen the digital tools that increasingly shape daily life.
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