en.Wedoany.com Reported - Shanghai Sanfei Semiconductor Co., Ltd. recently signed an agreement with Chengxiang Town, Taicang City, China, planning a total investment of 2 billion yuan to build the Sanfei Compound Semiconductor Optical Chip Manufacturing Base. The first phase of the project involves a total investment of 1 billion yuan, is expected to commence construction in August this year, and is planned to begin production and operation in 2028. Upon reaching full capacity, the base is projected to achieve an annual output value exceeding 1 billion yuan, becoming a significant growth point supporting China's high-end optical communication industry chain.
Shanghai Sanfei Semiconductor possesses profound independent technological expertise in optical chip manufacturing, electrical chips, and algorithms, with stable mass production experience capable of producing 8 million high-end optical chips per month. The project established in Taicang will focus on the research, development, and production of Indium Phosphide (InP) lasers, photodetector chips, and Gallium Arsenide (GaAs) laser chips. The project aims to build an integrated industrial chain covering epitaxial growth, chip manufacturing, and optoelectronic integration. Its products will be widely applied in cutting-edge fields such as 5G communication, supercomputing data centers, and laser sensing.
Against the backdrop of the current explosive demand for AI computing power, optical chips, as the core components of optical modules, are at a critical juncture of technological iteration. Since ultra-high-bandwidth optical modules such as 800G and 1.6T must use Indium Phosphide material to meet high-frequency band requirements, traditional silicon and Gallium Arsenide materials can no longer satisfy performance demands. With global shipments of 1.6T optical modules expected to exceed 10 million units by 2026, the price of Indium Phosphide material has surged significantly, with the price of 2-inch substrates increasing by up to 187%. This strategic move by Sanfei Semiconductor not only aligns with the global optical communication market's explosive growth cycle but will also help China seize a technological high ground in the projected scale optical chip market exceeding 15.9 billion yuan by 2025, strengthening China's strategic position as a global core supplier of optical devices.
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