tsmc overtakes intel in silicon photonics race, visera poised for ai boom

2025-09-04 tsmc

taipei, Thursday, 4 September 2025.
tsmc is now leading the silicon photonics technology race. The company outperformed intel in us patent applications by nearly double. This edge positions tsmc and its subsidiary visera to dominate the expanding ai market. Industry analysts believe this will significantly boost tsmc’s revenue. Nvidia’s next-generation rubin platform will incorporate tsmc’s silicon photonics. Production of tsmc’s coupe technology is slated for 2026. This could solidify tsmc’s lead in advanced chip manufacturing.

patent leadership and market impact

TSMC’s increased focus on silicon photonics is evident in its patent filings. In 2024, TSMC secured 50 silicon photonics-related patents in the U.S., almost double Intel’s 26 [1][6]. This contrasts with 2023, when TSMC and Intel had close numbers, with 46 and 43 respectively [1][6]. TSMC’s advancements are expected to enhance AI processing capabilities, positively impacting its stock, which saw a 3% increase on August 30, 2025, following the silicon photonics news [4]. Market analysts anticipate continued growth in TSMC’s stock value [4].

visera’s role and strategic partnerships

Visera, a TSMC subsidiary, is integrating silicon photonics into next-generation AI accelerators [4]. TSMC is deepening its collaboration with Marvell, a major ASIC and high-speed networking chip company, focusing on advanced processes below 3 nm and next-generation silicon photonics to expand its market reach [1]. This collaboration extends to other players in the ecosystem. Hsing Kuang, a Marvell supplier, is expected to indirectly enter TSMC’s silicon photonics supply chain [3].

challenges and stock considerations

While TSMC’s advancements are promising, some silicon photonics concept stocks have faced scrutiny. For instance, Genvict-KY was listed as a stock of concern due to a high price-to-earnings ratio of 470 on September 1, 2025 [4]. The company’s stock price has shown volatility, decreasing by 2.18% in the three days prior to September 3, 2025, and 10.29% in the five days prior [4]. Investors should consider these factors when evaluating the potential of silicon photonics-related stocks [alert! ‘stock performances are volatile and depend on many factors’].

manufacturing and future plans

TSMC plans to complete verification of its Compact Universal Photonic Engine (COUPE) in 2025 and integrate it into CoWoS packaging in 2026 [1][6]. This integration aims to drive AI transformation through more efficient connections. TSMC is also establishing its first CoPoS (Chip on Package on Substrate) packaging technology experimental line at its subsidiary, Challywood, in 2026 [7]. A mass production facility for CoPoS is planned for Chiayi AP seven, targeting mass production between late 2028 and 2029 [7].

expert opinions and market dynamics

According to a lead analyst at TechInsights, TSMC’s silicon photonics is a game-changer for the AI industry [4]. Nvidia showcased a Spectrum-X switch using co-packaged optics (CPO) at the HotChips 2025 conference, indicating the technology is entering the implementation phase [1][6]. TSMC’s advancements in silicon photonics are crucial for meeting the increasing demands of AI data transmission, positioning the company favorably in the competitive landscape [1].

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artificial intelligence silicon photonics