Silicon Photonics Market

The silicon photonics market was valued at USD 2.65 billion in 2025 and is projected to reach USD 9.65 billion by 2030, growing at a CAGR of 29.5% from 2025 to 2030. The increasing need for high-speed data transport, as well as the need for energy-efficient solutions in data centers and AI, are the primary drivers of silicon photonics. Improvements in CMOS compatibility enable cost-effective mass production, increasing industry-wide use.

The major players in the silicon photonics market are Cisco Systems, Inc. (US), Intel Corporation (US), MACOM (US), GlobalFoundries Inc. (US), Lumentum Operations LLC (US), Marvell (US), Coherent Corporation (US), IBM (US), STMicroelectronics (US), Rockley Photonics Holdings Limited (US) among others. The dominant strategies in the silicon photonics industry are vertical specialization and integration. Intel and Cisco are pursuing integration, focusing on merging electronic and photonic components onto the same chip to enhance performance and scalability. In contrast, companies like Ayar Labs and Rockley Photonics have chosen vertical specialization, concentrating on niche applications and delivering tailored photonic solutions for sectors such as AI, healthcare, and data centers. Overall, the main strategies in the silicon photonics industry remain vertical specialization and integration.

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Major Silicon Photonics Companies Include:

• Cisco Systems, Inc.(US)
• Intel Corporation (US)
• MACOM (US)
• GlobalFoundries Inc. (US)
• Lumentum Operations LLC (US)
• Marvell (US)
• Coherent Corporation (US)
• IBM (US)
• STMicroelectronics (Switzerland)

Intel Corporation (US)

Intel is the global semiconductor innovation leader with deep core strengths in leading-edge chip manufacturing, integrated circuit design, and high-performance computing. Intel applies its CMOS-based integration expertise to develop cloud infrastructure and data center optical transceivers in silicon photonics. Intel has invested heavily in R&D to push optical I/O closer to the CPU for faster, power-efficient data processing. Intel's strategy includes vertical integration to develop, manufacture, and test its photonic solutions within itself. It has made strategic acquisitions of important assets like Barefoot Networks and Habana Labs to enhance its AI and networking capabilities. Intel also collaborates with cloud providers and hyperscale data centers to co-develop bespoke solutions. Its emphasis on end-to-end platform solutions, from silicon to system-level products, enables it to be at the forefront of competition. Its capacity to increase production through its foundry capability brings flexibility and entry into the market. Intel continues to advance in hybrid photonic-electronic systems as the demand for high-speed data rises.

Cisco Systems, Inc. (US)

Cisco is the networking and communications technology leader, and its main areas of strength are systems integration, network infrastructure, and security. Cisco has been focused on acquiring capabilities instead of developing them from scratch using silicon photonically. It acquired silicon photonics industry leader Luxtera in 2019 to strengthen its high-speed optical interconnects portfolio in data centers. This move is the best example of Cisco's horizontal integration strategy, expanding its product offerings to cover the whole networking stack. The primary business activities of Cisco include partnerships and joint ventures with cloud service providers to deliver scalable network solutions. It incorporates photonics in its end-to-end switching, routing, and software-defined networking design. With the convergence of hardware innovation and software capabilities, Cisco remains the new internet infrastructure market leader. Its global reach, strong brand, and customer relationships enable it to roll out new photonic technologies rapidly at scale. Cisco still structures its R&D and acquisitions in terms of the shift to AI and edge computing environments.

Related Reports:

Silicon Photonics Market by Product (Transceivers, Variable Optical Attenuators, Switches, Sensors and Cables), Components (Lasers, Modulators, Optical Waveguides, Optical Interconnects, Photodetectors) - Global Forecast to 2030

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