Silicon Photonics Wafer Foundry Service Market to Hit USD 1.7 Billion by 2034 Fueled by Data Center Bandwidth

 Global Silicon Photonics Wafer Foundry Service market stood at USD 170 million in 2024 and is expected to achieve USD 1.7 billion by 2034, growing at a CAGR of 33.1% over 2026-2034. This robust expansion reflects surging adoption in hyperscale data centers seeking energy-efficient optical interconnects.

Silicon photonics wafer foundry services involve fabricating photonic integrated circuits (PICs) on silicon-on-insulator substrates using CMOS-compatible processes like plasma etching for waveguides with losses below 1 dB/cm and thin-film deposition for modulators achieving 10 GHz bandwidths. These services produce 200mm to 300mm wafers integrating lasers, detectors, and multiplexers, enabling hybrid electro-optic chips for 400G+ transceivers that cut power by 50% versus pluggable optics. Primarily utilized in data center switches handling AI workloads, telecom 6G fronthaul links, automotive LiDAR arrays scanning 200m ranges, and biomedical spectrometers detecting biomarkers at femtogram sensitivity, they leverage silicon's refractive index of 3.48 for compact footprints under 1 cm².