Sivers Semiconductors is investing USD 30 million to expand its photonics manufacturing facility in Glasgow, Scotland, anticipating increased demand from the rapidly growing artificial intelligence infrastructure sector. The expansion is projected to yield over 100 million CW DFB lasers annually, a substantial increase in production capacity timed to support customer production ramps.

“The scale of today’s AI infrastructure build-out is creating demand across the optical supply chain,” said Vickram Vathulya, President and CEO of Sivers Semiconductors. The investment, expected to be operational in the fourth quarter of 2027, signals a shift for Sivers from a “Fab-Lite” to a new strategy.

Glasgow Expansion Targets 100 Million CW DFB Lasers Annually

This investment of USD 30 million will introduce new process capabilities and automation to the existing indium phosphide manufacturing site, enhancing both production volume and flexibility. This move represents a shift toward a Hybrid Manufacturing strategy, integrating expanded internal production with established foundry partnerships for packaging and manufacturing. Neeraj Chopra, COO of Sivers Semiconductors, said that by combining the Glasgow expansion with the manufacturing capacity of external foundry partners, the company can scale efficiently while maintaining the supply flexibility customers need.

This approach balances in-house control of core photonics technologies with the scalability required to meet surging demand, ensuring a resilient supply chain. Increased customer engagement in both AI datacenters and advanced optical interconnect applications drove the decision to expand manufacturing capacity. Sivers anticipates that indium phosphide-based lasers and semiconductor optical amplifiers will be critical components in enabling high-performance, energy-efficient optical connectivity for these systems. “This investment positions us, along with our foundry partners, to meet that demand.”