A. SEMICON Taiwan 2024

SEMICON Taiwan 2024 was held at the Taipei Nangang Exhibition Center from September 4 to September 6. This annual event is a major focus for the global semiconductor industry, attracting industry leaders and experts from around the world. The theme of this year's exhibition was "Breaking Limits: Powering the AI Era", emphasizing technological innovation and the spillover effects on semiconductors.

SEMICON Taiwan this year did not only showcase Taiwan's leadership in the global semiconductor industry, but also fully reflected the latest trends and developments in semiconductor technology through 16 themes, 20 forums, and multiple technology exhibition areas. 

B. With a CAGR of over 20%, silicon photonics is driving semiconductor industry growth

AI computing chips are not the only focus of market attention lately. The development of silicon photonics was also a highlight at SEMICON Taiwan 2024. Silicon photonics uses light waves for data transmission to significantly increase transmission speeds and reduce energy consumption, and hence it serves as a key technology for high-performance computing and data centers. Given the rapid growth of AI, 5G, and cloud computing, the market potential of silicon photonics is beginning to become apparent. 

Many exhibitors demonstrated their latest advances in silicon photonics technology, such as more efficient photoelectric converters, miniaturized optical components, and advanced packaging. These technological improvements not only enhance overall system performance, but also the feasibility of wider adoption of silicon photonics technology.

It is estimated that the global silicon photonics semiconductor market will reach $7.86 billion by 2030, with a compound annual growth rate (CAGR) of 25.7%. 

C. Taiwan's semiconductor industry establishes SEMI Silicon Photonics Industry Alliance (SiPhIA) to accelerate the construction of the ecosystem and strengthen its position in the AI Industry

With the call-to-action from TSMC and ASE, SEMI established the SEMI Silicon Photonics Industry Alliance (SiPhIA). Initial members include over 30 companies such as AUO, Foxconn, MediaTek, MPI, VIS, and Winway. These companies will jointly drive the development of silicon photonics, share knowledge, resources, and expertise through the alliance, and create Taiwan's silicon photonics ecosystem. By leveraging Taiwan's semiconductor industry's rich experience and resources, the research and manufacturing capabilities in silicon photonics will continue to grow, forming the solid foundation for Taiwan to become an AI technology cluster in the future.

Figure 1: SEMI establishes SEMI Silicon Photonics Industry Alliance (SiPhIA) to accelerate the construction of the ecosystem

Taiwan is well-recognized as the world's most complete AI ecosystem, from IC design, chip manufacturing to server production. With the introduction of silicon photonics technology, Taiwan's AI capabilities will be further enhanced. Silicon photonics technology can significantly increase data transmission speeds and reduce energy consumption, which is crucial for the high-performance computing needed to enable AI use cases. In conjunction with Taiwan's competitive edge in semiconductor manufacturing processes, silicon photonics will inject new momentum into Taiwan's AI ecosystem, strengthen its leadership in the global AI industry and drive the development of more innovative applications.