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Silicon photonics to reach key market turning point in 2025
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Author : JIUZHOU
Update time : 2025-06-06 10:35:56
The latest report from a market research firm shows that silicon photonics is growing quickly. This comes after ten years of development. With the application of LPO and CPO technologies, its market share is expected to increase from 30% in 2025 to 60% in 2030.
In May 2025, a market research firm released a report. Silicon photonics has many advantages. However, it took nearly ten years for it to be widely used in the optical module market.
The report predicts that the use of linear drive pluggable and co-packaged optical technologies will grow. This will raise the market share of silicon photonics from 30% in 2025 to 60% in 2030.
Some companies regard silicon photonics as the core of current and next-generation optical devices. In March 2025, some companies announced the launch of the first 1.6T CPO system. This system uses a new micro-ring modulator.
They plan to mass-produce X silicon optical switches in the second half of 2025. They will also launch X optical interconnection systems in the second half of 2026.
The move from pluggable optical modules to CPO is a big change in the industry. However, real-world uses still face many challenges. End users should understand how CPO can help save costs. This is important along with manufacturing and power use issues.
To speed up popularity, some companies plan to offer complete systems. These systems will include integrated CPO and will handle operation and maintenance.
Though performance may attract customers, cloud giants like Meta and Microsoft won’t rely on one supplier for long. The report believes that the widespread application of CPO requires competitive ecological support.
CPO technology will be mainly used for vertical expansion networks. Multi-cabinet vertical expansion systems depend on CPO. Bandwidth needs are nine times higher than horizontal expansion. Even small applications will need millions of ports.
The report says the optical chip market will reach US$1.7 billion in 2024. Silicon photonic chips will make up about one-third of this market. Despite the limited scale, leading foundries have entered the market.
The market is expected to reach over US$5 billion by 2030. The share of silicon photonics will double and grow six times in six years. In the future, CPO might be an important technology for complex ASICs. This could happen in the next ten years.
In May 2025, a market research firm released a report. Silicon photonics has many advantages. However, it took nearly ten years for it to be widely used in the optical module market.
The report predicts that the use of linear drive pluggable and co-packaged optical technologies will grow. This will raise the market share of silicon photonics from 30% in 2025 to 60% in 2030.
Some companies regard silicon photonics as the core of current and next-generation optical devices. In March 2025, some companies announced the launch of the first 1.6T CPO system. This system uses a new micro-ring modulator.
They plan to mass-produce X silicon optical switches in the second half of 2025. They will also launch X optical interconnection systems in the second half of 2026.
The move from pluggable optical modules to CPO is a big change in the industry. However, real-world uses still face many challenges. End users should understand how CPO can help save costs. This is important along with manufacturing and power use issues.
To speed up popularity, some companies plan to offer complete systems. These systems will include integrated CPO and will handle operation and maintenance.
Though performance may attract customers, cloud giants like Meta and Microsoft won’t rely on one supplier for long. The report believes that the widespread application of CPO requires competitive ecological support.
CPO technology will be mainly used for vertical expansion networks. Multi-cabinet vertical expansion systems depend on CPO. Bandwidth needs are nine times higher than horizontal expansion. Even small applications will need millions of ports.
The report says the optical chip market will reach US$1.7 billion in 2024. Silicon photonic chips will make up about one-third of this market. Despite the limited scale, leading foundries have entered the market.
The market is expected to reach over US$5 billion by 2030. The share of silicon photonics will double and grow six times in six years. In the future, CPO might be an important technology for complex ASICs. This could happen in the next ten years.
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