UK silicon photonics study backs domestic pilot line

The CORNERSTONE Photonics Innovation Centre at the University of Southampton has published research on the UK silicon photonics sector, arguing that stronger domestic scale-up infrastructure could boost growth and support sovereign technology development.

A survey of 100 UK-based decision-makers found broad support for expanding domestic manufacturing and prototyping capacity in silicon photonics, which integrates optical components onto silicon chips. It also identified trade barriers and reliance on overseas manufacturing as constraints on growth.

The findings show that 76% of respondents believe better UK scale-up infrastructure would accelerate company growth. Nearly a third, 32%, said high tariff costs were creating barriers to developing silicon photonics prototypes.

Economic analysis by CORNERSTONE researchers suggests a domestic pilot line could add GBP £2.9 billion to the UK economy by 2040 and create about 2,850 jobs. The analysis also links a pilot line to stronger domestic positions in artificial intelligence and quantum technologies.

Domestic demand

The study portrays a sector with strong UK ambition but uneven industrial support. Some 77% of respondents said they are developing or deploying silicon photonics in the UK, or plan to do so, while 64% said they already manufacture abroad or expect to in future.

That split highlights a gap between research and commercial production. More UK fabrication and process support would help retain a larger share of value that currently flows overseas, the study argues.

Two-thirds of respondents, 67%, said they were confident in the UK's ability to benefit from the silicon photonics opportunity. CORNERSTONE set that against wider expectations for growth in photonics, with the broader UK sector forecast to generate annual output of more than GBP £20 billion.

Silicon photonics has attracted growing attention for its potential use in data centres, optical networks, artificial intelligence systems and quantum technologies. It has also become part of a wider debate over how the UK can build strategic capacity in advanced semiconductor-related industries.

Case for pilot line

A central finding was industry support for a UK pilot line, which would give companies access to mid-stage production support between laboratory work and full commercial manufacturing. In the survey, 74% said such a facility would accelerate innovation and 79% said it would significantly strengthen the UK's sovereign technology position.

Respondents said a pilot line would also improve quality, speed time to market and reduce reliance on overseas foundries. The responses point to a practical concern among companies that can design and test products but have limited local options when they need to scale production.

The findings align with recent calls for a national photonics roadmap and investment in silicon photonics infrastructure. They also come as international interest in the field rises, including major private investment in the US.

Professor Graham Reed, Director of CORNERSTONE, said: "Global investment in SiPh is accelerating - we've seen the scale of ambition from the US, with major federal and private commitments including NVIDIA's flagship $6bn investments. The UK has the talent, the expertise, and the market opportunity to make substantial gains in the sector, and CORNERSTONE's market research demonstrates significant demand for domestic pilot line capabilities."

The research suggests UK companies want to keep more of their development and production activity at home if the industrial base can support it. For policymakers, that frames silicon photonics as both an economic opportunity and a resilience issue.

CORNERSTONE is an open-access silicon photonics prototyping foundry hosted at the University of Southampton, with partners including the University of Glasgow and the Science and Technology Facilities Council. Since 2014, it has fabricated more than 900 photonic integrated circuit designs for more than 125 organisations across 26 countries.

Callum Littlejohns, Deputy Director at CORNERSTONE, said: "2024 projections from Future Markets puts the global SiPh market at least $46.5B by 2035 as demand from AI infrastructure, data centres, and quantum technologies accelerate. Commercialising products is the only way to get a slice of the pie. The case for support from the UK government is straightforward. A domestic pilot line is the logical next step to help companies scale their silicon photonics chips, translating directly into jobs, export revenue, and long-term technological sovereign capability."