TSMC Dramatically Expands Photonic IC Capacity, Targeting 25,000 Wafers Monthly by 2028
Taiwan Semiconductor Manufacturing Company (TSMC) is set for a significant expansion of its Photonic Integrated Circuit (PIC) production capacity, according to industry forecasts. The company's current PIC capacity stands at approximately 500 wafers per month. This is projected to surge to 10,000 wafers per month by the second quarter of 2026, and further increase to 15,000 wafers per month by the fourth quarter of the same year.
Looking ahead, TSMC anticipates reaching a monthly capacity of at least 25,000 PIC wafers by 2028. Based on an estimation that each wafer contains 648 dies, this expansion would represent a substantial leap in annual output. The annualized production volume is expected to rise from around 4 million dies to 78 million dies when capacity hits 10,000 wafers per month. If the capacity reaches the projected 25,000 wafers per month by 2028, the annualized PIC output is estimated to reach 194 million dies.
TSMC's aggressive expansion in Photonic Integrated Circuit (PIC) capacity signals a strategic bet on the growing demand for high-speed data transmission and optical computing solutions. This move aligns with the broader industry trend towards silicon photonics as a key enabler for next-generation networking, artificial intelligence, and data centers, which require lower power consumption and higher bandwidth than traditional electronic interconnects. The substantial increase in production volume suggests TSMC's confidence in the scalability and cost-effectiveness of its manufacturing processes for these advanced components. This expansion could solidify TSMC's position as a critical supplier in the photonics ecosystem, potentially influencing the competitive landscape and accelerating the adoption of optical technologies across various sectors in the coming decade.
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