It is reported that Samsung Electronics is collaborating with Broadcom to develop silicon photonics related technology known as "optical semiconductors". Silicon photonics technology converts the data communication between semiconductors from electrical signals to optical signals, increasing data processing speed by more than 10 times, and is therefore considered a key process technology for the next generation of wafer foundry manufacturing. TSMC, the global semiconductor foundry leader, plans to apply this technology to NVIDIA's artificial intelligence (AI) accelerator production in the second half of this year.

According to industry sources, Samsung Electronics is collaborating with Broadcom with the goal of achieving mass production and commercialization of silicon photonics technology within two years. Although Samsung Electronics is also discussing technology implementation with companies such as Nvidia, its cooperation with Broadcom is the most advanced.

A semiconductor industry insider said, "TSMC started the research and development of silicon photonics technology earlier than Samsung Electronics. After Broadcom proposed joint development at the beginning of last year, Samsung Electronics quickly responded. Currently, the cooperation between Samsung Electronics and Broadcom has made the fastest progress

Samsung Electronics plans to accelerate the development of next-generation wafer foundry processes through close cooperation with Broadcom. Broadcom has strong capabilities in the fields of wireless communication and optical communication semiconductors, with its wireless communication chips accounting for about 30% of the company's overall revenue and semiconductors used in optical communication equipment accounting for about 10%. It is reported that Broadcom plans to cooperate with Samsung Electronics to apply this technology to the mass production of next-generation application specific chips (ASICs) and optical communication device semiconductors.

As the market share gap with TSMC continues to widen, Samsung Electronics' strategy is to ensure its competitiveness in advanced process technology. At present, most of the orders from global technology giants are taken over by TSMC, and Samsung Electronics has relatively few orders in high-end OEM business. Therefore, it is necessary to fully promote cooperation with Broadcom. TSMC relies on partnerships with Apple, Nvidia AMD\ The deep cooperation between global fabless companies such as Qualcomm not only gives them an advantage in advanced process competition, but also leads in the research and development of next-generation processes. Due to the low yield of the 3 nanometer (nm) process, TSMC has taken over the market share. Samsung Electronics is making every effort to improve the yield and performance of the 2nm process, while accelerating the pace of catching up with next-generation processes such as silicon photonics.

A semiconductor industry expert pointed out, "As wafer foundry processes enter below 3nm, simply reducing transistor size is no longer the optimal solution. In addition to fully enclosed gate (GAA) and backside power supply (BSPDN) technologies, next-generation processes such as silicon photonics that can maximize power efficiency and signal processing speed will determine the success or failure of future wafer foundry businesses, especially in the context of increasing demand for AI technology

However, compared to TSMC's commercialization schedule for silicon photonics technology, Samsung Electronics still has a gap of 1 to 2 years. TSMC plans to build a silicon photonics production line in Taiwan in June this year and apply this technology to Nvidia's AI accelerator manufacturing by the first half of next year at the latest. Nvidia announced at the IEDM 2024 Semiconductor Conference in December last year that its AI GPU will adopt TSMC's silicon photonics technology in the future.