STMicroelectronics is considering expanding its Crolles chipmaking facility in France by the end of 2026, driven by rising demand for silicon photonics in AI data centers, as stated by CEO Jean-Marc Chery at a conference in Geneva. This expansion would address the growing market for near-package optics, which positions optical engines closer to processors, thereby enhancing performance. With existing infrastructure at Crolles already supporting silicon photonics growth through early 2028 and a strategic partnership with Amazon Web Services bolstering production efforts, STMicro is well-positioned to capitalize on this evolving market, aiming to increase its market share significantly from 5% to 30% in the coming years.

Jean-Marc Chery: Jean-Marc Chery is the chief executive of STMicroelectronics. Speaking at a BNP Paribas-hosted conference in Geneva, he indicated that a decision on additional Crolles capacity is likely by the end of 2026 to address the shift toward near-package optics. He noted that existing infrastructure supports operations into early 2028 while emphasizing attention to packaging subcontractors.
Remi El-Ouazzane: Remi El-Ouazzane is an executive at STMicroelectronics focused on data center initiatives. He highlighted the company’s trajectory in the silicon photonics market, referencing customer engagements and support from major hyperscalers including Amazon Web Services.
STMicroelectronics: STMicroelectronics is a Franco-Italian semiconductor manufacturer focused on chips for electronics and data infrastructure. It operates its primary 300-millimetre wafer fabrication plant in Crolles, France, as the key site for silicon photonics production used in optical connections for data centers. The company is evaluating further expansion of this facility in response to rising demand tied to AI applications.
Amazon Web Services: Amazon Web Services is a leading cloud services provider with a strategic partnership involving STMicroelectronics. This relationship supplies backing for STMicro’s efforts to expand its presence in the silicon photonics segment serving AI data centers.

AI Data Center Demand: Accelerating adoption of near-package optics is expanding the market for silicon photonics solutions in AI infrastructure.
Manufacturing Capacity: Existing investments at Crolles position the company to support silicon photonics growth through early 2028 without immediate internal capacity constraints.
Strategic Partnerships: Collaborations with hyperscalers are central to scaling silicon photonics production for data center applications.