Lee Hyo-jong, CEO of LC SQUARE (right), and Shim Kyu-hwan, CEO of Sigetronics, shake hands to mark the beginning of their collaboration. <Photo provided by LC SQUARE>

Two South Korean tech companies have joined hands to accelerate the development of silicon photonics—a next-generation technology seen as essential for AI semiconductors and data center infrastructure. LC SQUARE and Sigetronics announced on July 13 that they will jointly develop optical transmission modules for silicon photonics applications.

Silicon photonics is a technology that replaces traditional electrical signals within circuits with light, enabling significantly faster data transmission. For example, whereas connections between GPUs and high-bandwidth memory (HBM) currently use copper wiring, silicon photonics introduces optical links to enhance performance. As AI models grow more complex and data-intensive, improving interconnect speed between chips becomes just as critical as enhancing the chips themselves.

An LC SQUARE official explained, “Conventional metal wiring faces fundamental limits in signal transmission, and also suffers from high heat and power consumption. That’s why the industry is shifting toward optical interconnects, which offer faster speeds with lower energy use.”

Specifically, the two companies will use micro-light-emitting diodes (micro-LEDs) as light sources for optical communication. Although laser-based sources are standard in optical systems, micro-LEDs are emerging as a more power- and cost-efficient alternative, particularly for the short transmission distances—typically just a few centimeters—needed in AI semiconductor applications.

LC SQUARE, known for its proprietary micro-LED mass transfer technology, will lead the development of gallium nitride (GaN) micro-LED arrays for optical transmission.

Sigetronics, a specialized semiconductor firm with expertise in high-performance photodiode (PD) sensors, will develop 2D micro-PD arrays for optical signal reception.

The two companies aim to complete joint development by 2027 and move into commercialization in 2028. The resulting modules are intended for integration into AI semiconductor 3D packaging and board-level solutions used in PCs and data center servers.

According to market research firm Global Market Insights (GMI), the global silicon photonics market is projected to grow from USD 1.24 billion in 2023 to USD 8.85 billion by 2032—representing an average annual growth rate of over 23%. Growth is expected to be driven by the expansion of cloud computing, advanced data transmission technologies, and the evolution of AI.

LC SQUARE CEO Lee Hyo-jong stated, “By leveraging our respective core technologies, we aim to develop state-of-the-art optical interconnect solutions and make a strong entry into the AI semiconductor and data center markets.”

Etnews, lloydmind@etnews.com, July 14, 2025