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Survey of 500 industry decision-makers finds scale-up capacity and foundry access are slowing innovation as governments push for semiconductor sovereignty.
Research published this week by the CORNERSTONE Photonics Innovation Centre reveals that challenges with prototyping and access to scale-up infrastructure risk stalling the growth of the silicon photonics (SiPh) sector in key global markets if not urgently addressed, new market research.
The market research, conducted via OnePoll and featuring insights from 500 decision-makers based in the UK, US, the Netherlands, Germany, and Spain who are currently developing/deploying SiPh chips or in the planning stages of doing so, identifies multiple barriers currently hindering the sector’s development.
In parallel, it highlighted clear job and revenue opportunities that will be created if these hurdles can be overcome, demonstrating clear benefits that will be realised if action is taken
Silicon photonics – which integrates light-based components onto silicon chips – is increasingly being recognised as a critical part of national tech strategies.
CORNERSTONE is a UK space-sector training and innovation initiative operated through the South Coast Centre of Excellence in Satellite Applications (SCCoE), part of the national network supported by the UK Space Agency and the Satellite Applications Catapult.
It helps businesses, researchers, entrepreneurs, and public-sector organisations harness satellite technologies, including Earth observation, satellite communications, navigation, AI, and data analytics, through training, networking, funding support, and industry collaboration. Its training programme is aimed at startups, SMEs, researchers, and professionals seeking to enter or grow within the space economy.
Courses cover satellite data, Earth observation, geospatial technologies, space business development, funding opportunities, proposal writing, and commercialisation, and provide guidance on accessing UK and European innovation and funding programmes.
Manufacturing access remains the biggest hurdle
For companies looking to develop silicon photonics chips, being able to prototype quickly and cost-effectively is instrumental on the path to commercialisation.
Yet lengthy turnaround times at many large foundries, alongside geopolitical factors such as tariffs, are slowing innovation on a global scale:
- 59 per cent stated their country lacks the infrastructure needed to progress from research to commercialisation, despite 67 per cent viewing scale-up infrastructure as key to bolstering sovereign tech capabilities.
- Two-thirds of respondents (66 per cent) report that manufacturing access is the primary roadblock to commercialisation.
- 27 per cent experienced lengthy foundry turnaround times19 per cent encountered restrictive foundry NDAs and license agreements.
- Nearly a quarter (23 per cent) said understanding the ecosystem and/or connecting with multiple supply chain partners presented a challenge.
Clear cost of delays
Due to these barriers, businesses are forced to cancel or delay their prototyping plans.
31 per cent of respondents globally report delayed product roadmaps, causing notable financial losses of $2.7 million on average for the same period. If these hurdles can be overcome, the opportunities are huge.
Globally, almost half (48 per cent) of survey respondents state that they could begin generating commercial revenue 7–12 months earlier if prototyping cycles were accelerated by 25 per cent.
Europe pushes for semiconductor sovereignty
The findings come at a pivotal time for the silicon photonics sector. Governments around the world are increasingly looking to develop sovereign chip capabilities and recognising the strategic importance of silicon photonics in mitigating AI power consumption and supporting quantum strategies.
Already this month, the EU announced proposals for an EU Chips Act 2.0 to build Europe’s resilience and technological sovereignty in semiconductors.
With an average of 54 per cent of respondents across the Netherlands, Germany, and Spain believing the current EU Chips Joint Undertaking does not go far enough to support silicon photonics companies, the revisions are likely to be welcomed by the SiPh sector across the continent.
Quantum and AI hardware key drivers for future SiPh chip development
In the UK, SiPh – and the technologies it enables – are also increasingly featured on the government agenda.
Last week the UK launched its AI Hardware Plan, which specifically highlighted silicon photonics, and in March pledged £2 billion to strengthen its quantum capabilities, as it looks to establish leadership in the space.
64 per cent of UK respondents stated their organisation is currently developing silicon photonics chips for quantum technologies, and 56 per cent for AI hardware, highlighting the enormous potential of the technology to support sovereign tech strategies.
However, for the UK to fully capitalise on the SiPh opportunity, investment in a domestic pilot line to bridge the gap between lab-scale prototypes and full-scale commercial production is critical. Providing domestic scale-up infrastructure may also help retain specialists in a market where 42 per cent of UK businesses face skills shortages.
Currently, 24 per cent of UK respondents reported losing staff overseas, while 55 per cent said they personally plan to move abroad or have already done so.
“The silicon photonics industry in the UK and abroad is on the cusp of landmark growth, yet our findings clearly show that there are barriers to scale-up which must be urgently addressed to support the sector’s development,” commented Callum Littlejohns, Deputy Director, CORNERSTONE.
“At CORNESTONE, we aim to remove barriers to innovation, offering an open-source model to make silicon photonics accessible, and providing a rapid and flexible route to silicon photonics prototyping. But without critical scale-up infrastructure companies will hit a major roadblock to commercialisation.
As highlighted both in our market research and in the Council for Science and Technology’s letter to the Prime Minister in February, a pilot line is needed to support companies to scale-up and fully capitalise on the UK’s world-renowned R&D.”