TSMC is developing fully integrated silicon photonics, opening a bright future for chips

TSMC is shifting its focus toward silicon photonics

1. What has changed
- TSMC’s traditional specialization is the design and fine‑tuning of advanced semiconductor manufacturing processes.
- The company has recently expanded its portfolio to include chip packaging and testing.
- This has taken up a significant portion of resources, leaving little time for developing silicon photonics, which promises to become a key segment of the future.

2. New strategy
TSMC announced its intention to create a fully integrated silicon photonics platform and called it the COUPE approach (Compact Universal Photonic Engine).

3. Why COUPE matters
Current solutions: COUP/CPO (Co‑Packaged Optics). Optical modules are mounted on a PCB, connected to chips via wire or copper lines. Integration of optics directly into the substrate, interposer, and 3D packages.
Benefits of COUPE:
- Limited performance, high latency, high power consumption.
- Latency is reduced by up to 10× (substrate) and 20× (interposer).
- Energy efficiency improves by up to 4× (substrate) and 10× (interposer).
- Additional gains when integrated into a 3D package.

4. Technological breakthrough
- Micro‑ring modulator (MRM) – developed by TSMC with a throughput of 200 Gb/s.
- Serial production of the MRM is planned for the second half of this year.

5. Competitive prospects
If COUPE is successfully implemented, TSMC will be able to:

Potential client | Current partner | Nvidia | SPIL (current collaboration) | Broadcom–AMD | GlobalFoundries
Key competitor in silicon photonics – GlobalFoundries, as well as Ayar Labs and SPIL.

6. Conclusion
TSMC’s success will depend on how quickly and effectively the company implements COUPE and deeply integrates silicon photonics into its chips. If it can outperform competitors in latency and energy efficiency, TSMC could become a new leader in this promising field.