GlobalFoundries is capitalising on robust demand for optical modules in China as data centre construction accelerates, according to remarks made by one of the company's senior leaders to the South China Morning Post. The interview, conducted in Shanghai on Sunday by Ann Cao, highlighted how this market opportunity is fuelling the chipmaker's strategic push into photonics technology.
Optical modules function by converting data into light signals, enabling rapid transmission between servers within data centre infrastructure. Research from Counterpoint indicates that Chinese manufacturers account for nearly two-thirds of global optical transceiver production.
Shankaran Janardhanan, who leads GlobalFoundries' photonics and radio chip division, identified this growing demand as a key driver behind the company's substantial investment in photonics—technology that leverages light to transmit data. His comments came during the firm's annual technology summit held in Shanghai, as reported by the SCMP.
Beyond capitalising on current demand, GlobalFoundries is strengthening its presence in China to better serve regional customers. The company entered into an agreement in 2025 to manufacture certain automotive chips through a Chinese partner foundry, catering to clients requiring domestic chip production.
The company's photonics strategy gained momentum through its acquisition of Singapore-based Advanced Micro Foundry in November 2025. Following this transaction, GlobalFoundries announced it had secured the position of the world's largest independent silicon photonics foundry.
Looking ahead, Vincent Feng, the company's Asia Pacific regional head, indicated last week that GlobalFoundries is preparing a substantial capacity expansion driven by artificial intelligence demand, according to reporting by the Taipei Times.
Nevertheless, Chinese optical components face mounting challenges in the United States market. The FCC, America's telecommunications regulatory body, is developing restrictions on these products. Counterpoint has cautioned that such measures could increase expenses for major US cloud service providers including Amazon and Microsoft.
Source: The Next Web
