Industry Leaders Say Silicon Photonics Bottlenecks Have Shifted to Packaging Precision and Heterogeneous Integration

Industry representatives at Semicon Network Summit 2026 said the silicon photonics industry’s bottlenecks have shifted from materials to packaging precision and heterogeneous integration. According to ChainCatcher, Marvell’s CTO said copper interconnects are nearing physical limits and that end-to-end optical interconnects are inevitable. TNO/Holst Centre said the main challenge for co-packaged optics is integrating optical materials such as LiNbO3 and InP with CMOS platforms. TSIA said packaging now requires micron-level fiber alignment precision, while Taiwan has a global advantage in chips and packaging. TNO also said panel-level packaging is a key opportunity for Taiwan because its experience with large glass substrates could support rising data center optical interconnect demand, although gaps remain in technologies such as chip-to-wafer bonding equipment. Marvell said its silicon photonics chips are becoming increasingly dependent on Taiwan’s supply chain.