Laser chip manufacturers started foundry expansion projects, producing more than 1,000 wafers per week

Sivers Photonics, a leading supplier of optical fiber communications and III-V semiconductor photonics devices in the UK, said it is currently conducting a comprehensive evaluation to improve its operational capabilities to meet batch production targets of more than 1,000 wafers per week.

Start the optoelectronic foundry expansion project

Sivers Photonics is an important business unit of Sivers Semiconductors, a well-known Swedish chip and integrated module supplier. To achieve this goal, Sivers Semiconductors has initiated a strategic business development program, hired an expert guidance consultant and implemented key adjustments to the Opto-electronics management division. These measures demonstrate the company's determination to meet the growing market demand and strengthen its position in the industry.

For nearly 5 years Sivers Photonics has been working with very important customers who are now getting closer to mass production. To date, these customers have spent more than $15 million to ensure the concrete implementation of mass production. Sivers Photonics wants to achieve series production with one or several such customers, so the company needs to expand its capacity and production capacity. At present, Sivers Semiconductors has formed a strategic project to find a potential new fab in the EU or the USA for cooperation, including strategic partnerships in the field of optoelectronics.

Appointment of photonics business management

Sivers Photonics has hired a new consultant to lead the project. Current Photonics MD William McLaughlin will join the project to capture this important market opportunity. In addition, Dr. Andrew McKee, Chief Technology Officer (CTO) and co-founder of Sivers Photonics, will serve as interim Managing Director of Sivers Photonics.

The project will also look at potential funding sources alternatives, including: 1) Chip Act funding, which the EU has announced for EU Chip €43 billion to boost chip production within the EU; 2) The U.S. government's Chip and Science Act, which includes $39 billion to manufacture chips in the United States.

Anders Storm, Group CEO of Sivers Semiconductors, said: "The first order of around 30,000 chips will be delivered this quarter, and we now see a clearer path to mass production. By forming a strategic project, hiring consultants and allowing Billy McLaughlin, Managing Director of Sivers Photonics, to focus on developing the capabilities of the opto business unit. We believe we have the best chance of securing the right solution for the next stage. In addition, Andy McKee will ensure the stability and performance of the existing opto-electronics business."

Cooperate with well-known enterprises to consolidate mass production capacity

In recent years, Sivers Photonics has gained extensive experience in designing custom laser chips for a variety of global customers and advanced applications, providing custom high power, IP-based DFB lasers and gain chips, and is a strategic supplier to several global Fortune 100 companies and Silicon Valley enterprises.

Its foundries are able to provide end-to-end in-house capabilities, from prototyping to qualified high-volume manufacturing. At the end of 2020, for example, the company received £324,800 from the British government agency Innovate UK for its participation in the development of the autonomous quantum lidar "SPIDAR" project. In May last year, Sivers Photonics also signed a contract with a Fortune 100 technology company for a next-generation laser light source worth up to $617,000 to collaborate on the development and supply of custom lasers at different wavelengths and to deliver products.

Its parent company, Sivers Semiconductors, is also building strength. Sivers Semiconductors announced that it has signed a loan agreement with Formue Nord for up to SEK 75 million, of which SEK 25 million is a convertible loan. The company has also received a credit decision of an additional SEK 25 million from a commercial bank and is currently negotiating a definitive loan agreement. With the total financing of the new loan reaching SEK 100 million, the company will improve its financing conditions and secure long-term financing. Including the new private offering in April 2023, the company will raise a total of SEK 250 million.

Source: OFweek