Nvidia-backed optics vendor to boost wafer output by 4x to meet AI interconnect demand - The Register

As AI systems scale, optical technologies are becoming increasingly critical in their design. At Computex earlier this month, NVIDIA CEO Jensen Huang suggested that photonics could make Marvell the ne... Read original →

NVIDIA’s aggressive backing of photonics isn’t just about bandwidth—it’s a strategic rewrite of AI infrastructure. Coherent’s InP wafer expansion will catalyze EUV adoption in compound semiconductors and force tighter integration between silicon photonics and 3nm CMOS co-packaging. While U.S. CHIPS Act subsidies and Texas state funding lower near-term capex, over-concentration in domestic manufacturing heightens supply chain fragility, especially as InP substrates remain reliant on Japanese and German sources. Competitors like Intel and Broadcom will likely accelerate CPO roadmaps, while Taiwan, China foundries such as TSMC may leverage silicon photonics outsourcing to embed themselves in NVIDIA’s ecosystem. Within 18 months, optical interconnects will shift from optional to mandatory for AI clusters—making wafer capacity the new battleground for data center dominance.