Samsung Electronics is understood to be developing technologies related to silicon photonics, known as "optical semiconductors," in collaboration with Broadcom. Silicon photonics is a method of converting data communication between semiconductors from electricity to light, which can increase data signal processing speeds by over 10 times, making it essential process technology for next-generation foundries. Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest foundry, plans to commercialize this technology for the production of NVIDIA artificial intelligence (AI) accelerators in the second half of this year.
According to industry sources on the 7th, Samsung Electronics is reportedly aiming to commercialize silicon photonics technology for product mass production within two years in collaboration with Broadcom. Samsung Electronics is also in discussions with companies like NVIDIA for technology commercialization, but it is understood that its collaboration with Broadcom is the most advanced in terms of commercialization.
An industry source stated that "silicon photonics technology was initiated by TSMC ahead of Samsung Electronics in research and development (R&D)," noting that "Broadcom suggested joint development, prompting Samsung Electronics to respond swiftly since early last year. Currently, Samsung Electronics is in the fastest collaboration timeline with Broadcom."
Samsung Electronics plans to accelerate the development of next-generation foundry processes based on solid cooperation with Broadcom. Broadcom is a strong player in the fields of wireless and optical communication semiconductors. Semiconductors for wireless communication devices account for about 30% of Broadcom's total revenue, while those for optical communication equipment make up about 10%. It is reported that Broadcom plans to apply this technology for the mass production of next-generation application-specific integrated circuits (ASICs) and optical communication equipment in collaboration with Samsung Electronics.
As the market share gap between Samsung Electronics and TSMC widens, Samsung Electronics has a strategy not to fall behind in advanced process technologies. Facing a dearth of large orders from global big tech companies, Samsung Electronics must fully commit to collaboration with Broadcom. TSMC has secured large orders from global fabless semiconductor companies like Apple, NVIDIA, AMD, and Qualcomm, placing it in a favorable position not only in the competition for advanced processes but also in the development of next-generation processes. Like Samsung Electronics, which lost market share to TSMC due to instability in the yield of the 3nm process, is highly focused on stabilizing the yield of the 2nm process and improving performance, the company also plans to quickly catch up with TSMC in next-generation process technologies such as silicon photonics.
An industry source noted that "as foundry processes delve below 3nm, simply reducing circuit linewidths is no longer the best approach," adding that "the commercialization of next-generation processes that maximize power efficiency and signal processing speed, supported by gate-all-around (GAA) and backside power delivery network (BSPDN) technologies as well as silicon photonics, will determine the success of the foundry business in the future."
However, compared to TSMC's planned timeline for the commercialization of silicon photonics technology, Samsung Electronics is analyzed to be lagging behind by 1 to 2 years. TSMC plans to complete its silicon photonics production line in Taiwan by this June and intends to apply silicon photonics to the manufacture of NVIDIA's AI accelerators by the first half of next year at the latest. NVIDIA mentioned at the semiconductor conference "IEDM 2024" held last December that silicon photonics technology from TSMC is expected to be commercialized in the future.