GlobalFoundries, a U.S.-based semiconductor manufacturer, is intensifying its focus on China’s growing optical module market amid a surge in data center development and rising demand for advanced AI infrastructure. The company plans to expand its presence in China to better serve domestic clients and strengthen manufacturing partnerships.
Shankaran Janardhanan, senior vice president of GlobalFoundries’ photonics and radio frequency division, highlighted robust demand for Chinese optical modules, which are critical for transmitting data in high-performance data centers. Speaking at the company’s recent technology summit in Shanghai, Janardhanan noted that increasing data transmission speeds—from 100 to 200 gigabits per second per lane—have accelerated shipments of Chinese optical modules to U.S. hyperscalers.
These hyperscaler companies, including Microsoft, Amazon, and Meta Platforms, along with Chinese tech giants such as Alibaba Group Holding and Tencent Holdings, are advancing optical connectivity technologies to scale their AI-focused data center operations. GlobalFoundries, known for producing specialty semiconductors for data centers, automotive applications, and other systems, aims to leverage these market dynamics to carve out a niche by supplying Chinese optical module manufacturers.
In addition, Nvidia is playing a role in developing the ecosystem by integrating silicon photonics into its chips to overcome bandwidth limitations inherent in conventional electrical connections. However, industry leaders disagree on which optical data center standard—pluggable modules, near-packaged optics, or co-packaged optics—will ultimately dominate. Janardhanan underscored that the main obstacle remains the ability to manufacture and test these optical components at scale, regardless of the format.
To address this challenge, GlobalFoundries has introduced solutions in silicon photonics and advanced packaging, including its silicon photonics co-packaged advanced light engine, branded as “Scale.” This product is designed to facilitate mass production of complex optical components and support broader deployment of advanced optical connectivity.
Having operated in China for 12 years, GlobalFoundries has established strong links within the country’s automotive sector. The company is now expanding its manufacturing footprint by opening a new office in Guangzhou earlier this month to deepen a partnership with local foundry Zen Semi, focusing on producing 40-nanometer automotive chips. This collaboration aims to transfer technological expertise and develop local manufacturing capabilities to meet domestic market demand.
Janardhanan emphasized that while regionalization is important, maintaining global supply chain resilience remains crucial. He noted that no single region presently covers the entire semiconductor value chain independently, pointing to GlobalFoundries’ manufacturing network spanning the United States, Europe, and Asia as a strategic advantage.
Victor Hu, GlobalFoundries’ president in China, highlighted the new Guangzhou office’s role in bringing manufacturing capabilities closer to clients within the region.
Looking ahead, Janardhanan identified physical AI—the integration of robotics, autonomous vehicles, and smart devices—as a rapidly expanding market opportunity. He noted China’s swift progress in real-world AI applications and said GlobalFoundries is combining semiconductor technology with processor IP and software to position itself as a comprehensive technology partner as this ecosystem develops.