UMC will begin manufacturing lithium niobate chiplets for the optical interfaces of future AI chips

New phase for “secondary” players in the semiconductor market

With the advent of generative AI even companies that have traditionally handled support tasks in the industry are getting a chance to move to the front line. Taiwanese manufacturer UMC, together with American startup HyperLight, plans to launch production of a new material that will be in demand for optical interconnects between chips.

What exactly is being developed?
- Thin‑film chiplets made from lithium niobate – a material that allows rapid conversion of electrical signals into light.
- UMC’s partner is HyperLight, founded by former Harvard students and specializing in nanophotonics.

UMC senior vice president G.C. Hung said: “As bandwidth and interface speed requirements grow, existing solutions quickly hit their physical limits.” He added that many AI customers are already approaching the company to test new optical interconnects for next‑generation systems. UMC is ready to start chiplet production this year.

Technical specifications
- Bandwidth: 1.6 Tbps and above – sufficient for data centers.
- Advantages: faster signal conversion, lower power growth compared to traditional technology, reduced component size.

Competitors and partnerships
TSMC is also advancing silicon photonics in collaboration with Nvidia; their results will be released this year. Although the idea of silicon photonics is not new, using only silicon limits data transfer speed and increases power consumption. Lithium niobate eliminates these constraints.

Plan for the near future
- In 2025 UMC will launch its own platform to integrate customer chips with packaging‑level photonic solutions.
- HyperLight will gain access to a wide range of customers and can supply its developments onto UMC’s production line.
- Additionally, the Taiwanese company intends to collaborate with two other American players – Intel and Polar Semiconductor – to set up semiconductor component manufacturing in the United States.

Thus, thanks to new materials and partnership links, UMC aims to become a key player in optical interconnects, opening prospects for itself and its American partners.