Sivers Semiconductor AB plans to invest $30 million to expand its indium phosphide (InP) manufacturing facility in Glasgow, Scotland.
The company said the expansion is driven by anticipated demand for InP-based lasers due to the growth of optical networks used in AI data centers. Whether hyperscalers use traditional optical transceivers, co-packaged optics or linear-drive pluggable optics (LPO), these technologies will likely need an InP-based laser.
The expansion in InP manufacturing will increase Sivers’ capacity to more than 100 million continuous-wave distributed feedback (CW DFB) lasers annually. CW DFB lasers are placed inside transceiver modules at the end of fiber-optic cables to turn electrical data into pulses of light.
Hyperscalers are turning to optical transceivers as the need to carry data grows beyond what copper wire can handle.
“The scale of today’s AI infrastructure build-out is creating unprecedented demand across the optical supply chain,” said Vickram Vathulya, president and CEO of Sivers Semiconductors. “Our customers need significantly more laser production capacity and, just as importantly, the confidence that supply will be there when their programs ramp. This investment positions us along with our foundry partners, to meet that demand.”
Sivers said the Glasgow expansion will support its wider manufacturing ecosystem such as foundry, packaging and manufacturing partners in Asia. The company said this hybrid manufacturing approach provides:
- Greater production scalability
- Geographic flexibility
- Supply-chain resilience
- Continued in-house manufacturing capabilities
Sivers said the expansion program will begin in the second half of 2026 and become operational at the end of 2027.
