Leading Companies Consolidating Their Presence in the III-V On Silicon Photonics Market

The iii-v on silicon photonics market is on the brink of remarkable expansion, driven by technological advancements and increasing demand across various sectors. This market is set to transform how optical communication and high-speed data processing are integrated into everyday devices and infrastructure. Below, we explore the market size projections, leading companies, key trends, and segmentation that define this evolving industry.

Projected Size and Growth Trajectory of the iii-v on Silicon Photonics Market
The iii-v on silicon photonics market is predicted to experience rapid growth, reaching a market value of $6.52 billion by 2030. This represents an impressive compound annual growth rate (CAGR) of 22.9%. The forecasted expansion is largely due to the growth of cloud computing infrastructures and the increasing need for solutions that combine low power consumption with high bandwidth. Additionally, the proliferation of 5G and next-generation telecom networks, rising adoption in consumer electronics and healthcare sectors, and advances in hybrid integration technologies are propelling this market forward. Key developments expected during the forecast period include advancements in high-speed optical communication, broader use of integrated photonic circuits, growth in hybrid and monolithic integration methods, innovation in laser and modulator technologies, and expanding deployments in data centers and telecommunications.

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Leading Companies Making an Impact in the iii-v on Silicon Photonics Market
A range of prominent firms dominate the iii-v on silicon photonics space, contributing to its dynamic growth. Top players include Cisco Systems Inc., Intel Corporation, Broadcom Inc., Sumitomo Electric Industries Ltd., STMicroelectronics N.V., GlobalFoundries Inc., Marvell Technology Inc., Synopsys Inc., Coherent Corp., Lumentum Holdings Inc., Tower Semiconductor Ltd., Accelink Technologies Co. Ltd., MACOM Technology Solutions Holdings Inc., POET Technologies Inc., Eoptolink Technology Inc. Ltd., SMART Photonics B.V., Skorpios Technologies Inc., Sivers Semiconductors AB, Scintil Photonics SAS, and Ranovus Inc.

One notable event in this sector occurred in November 2025 when GlobalFoundries Inc., a US-based semiconductor manufacturer and advanced integrated circuit foundry service provider, acquired Singapore-based Advanced Micro Foundry Pte. Ltd. Although the financial details were not disclosed, this move aims to strengthen GlobalFoundries' leadership in silicon photonics and expand its AI infrastructure manufacturing capabilities by enhancing production of advanced optical and photonic chips.

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How Strategic Partnerships Are Steering Innovations in the iii-v on Silicon Photonics Industry
Companies within the iii-v on silicon photonics market are increasingly pursuing strategic partnerships to boost optical integration density and support the demands of high-bandwidth, low-latency data transmission. Such collaborations allow organizations to combine complementary expertise, share resources, and accelerate innovation while mitigating risks. Instead of mergers or acquisitions, these partnerships help expand market foothold effectively. For example, in August 2025, Tower Semiconductor from Israel teamed up with US-based Xscape Photonics, a developer of advanced photonic interconnect technologies. Together, they introduced the industry's first optically pumped on-chip multi-wavelength laser platform on Tower's PH18 silicon photonics process. This innovation integrates programmable multi-color lasers directly on-chip, supporting CWDM and DWDM optical fabrics optimized for AI data center clusters. The solution decreases latency, simplifies component complexity, and enhances manufacturability, cost-effectiveness, and scalability compared to traditional hybrid III-V laser integration methods.

Segment Breakdown and Market Forecast for the Global iii-v on Silicon Photonics Industry
The iii-v on silicon photonics market is segmented across multiple categories to better identify growth opportunities and applications:

1) By Component: Lasers, Modulators, Photodetectors, Transceivers, and Other Components.
2) By Material: Gallium Arsenide, Indium Phosphide, Gallium Nitride, and Other Materials.
3) By Integration Technology: Hybrid and Monolithic Integration.
4) By Application: Data Centers, Telecommunications, Consumer Electronics, Healthcare, Automotive, and Other Uses.

Further detailed segments include:
- Lasers divided into Continuous Wave Lasers, Pulsed Lasers, Tunable Lasers, and Multi Wavelength Lasers.
- Modulators subdivided into Electro Absorption Modulators, Mach Zehnder Modulators, Phase Modulators, and Amplitude Modulators.
- Photodetectors categorized as Avalanche Photodetectors, PIN Photodetectors, High-Speed Photodetectors, and Integrated Photodetectors.
- Transceivers split among Optical Transceivers, Pluggable Transceivers, Integrated Transceivers, and High-Speed Transceivers.
- Other components including Optical Amplifiers, Wavelength Filters, Couplers and Splitters, and Optical Switches.

This comprehensive segmentation enables a detailed understanding of the market landscape and highlights areas with the most significant growth potential through 2030.

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This release was published on openPR.