On February 20, STMicroelectronics (ST) announced the launch of a new computer chip targeting the rapidly growing AI data center equipment market. The chip was developed in collaboration with Amazon Web Services (AWS). As part of the “Stargate” initiative, top U.S. software companies plan to invest $500 billion in AI infrastructure, driving demand not only for NVIDIA computing chips but also for chips used in memory, power, and communication applications.STMicroelectronics is focusing on the communications market with its “photonics chip,” designed to improve transceiver speed & minimize power use in transceiver converters. Advanced AI data centers require hundreds of thousands of such transceivers.
Vincent Fraisse, General Manager of STMicroelectronics’ Wireless & Communication Chip Division, stated that the company has signed a collaboration agreement with AWS, which has been deeply involved in the technology’s development. “When this technology reaches mass production later this year, AWS will deploy it within its infrastructure,” said Fraisse. STMicroelectronics will mass-produce the chip at its factory in Crolles, France. Fraisse also noted that the company is working with leading optical solutions providers and market leaders in pluggable optical transceivers to integrate the chip into next-generation transceiver modules, though he did not disclose specific company names.
According to Reuters, top transceiver module manufacturers currently include U.S.-based Coherent and Cisco, as well as China’s Innolight and Accelink. Market research firm TrendForce highlights that compared to traditional electrical signal transmission, optical communication gives higher bandwidth, lower latency, & reduced signal attenuation, meeting the stringent requirements for high-performance data transfer in AI servers. This makes optical communication technology an important component of AI servers, driving demand for 800 Gbps and 1.6 Tbps solutions. As traditional servers upgrade their specifications, demand for 400 Gbps optical transceiver modules is also increasing.TrendForce reports that global shipments of optical transceiver modules above 400G reached 6.4 million units in 2023 and are expected to rise to 20.4 million units in 2024, surpassing 31.9 million units in 2025, with an annual growth rate of 56.5%.
