An institute linked to Shanghai Jiao Tong University has begun producing photonic chips at a facility called Chip Hub for Integrated Photonics Xplore (CHIPX) in Wuxi, Jiangsu province.

CHIPX makes 6-inch thin-film lithium niobate photonic wafers, with an annual output of 12,000 wafers.

Photonic chips use light to process data and enables applications in data communications, autonomous vehicles, biomedical tech, and quantum computing.

Established in 2021, CHIPX began manufacturing operations in September 2024.

This platform is expected to collaborate with industry partners to promote the adoption of photonic chip technology.

It will focus on areas such as 5G, 6G, AI data centers, and quantum networks.

As the US tightens chip export controls, China is investing in photonics and quantum tech to reduce dependence on foreign suppliers.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ China’s strategic pivot to alternative semiconductor paths

Shanghai Jiao Tong University’s photonic chip production represents China’s calculated diversification in semiconductor technology amid US restrictions.

While China’s photonic chip market reached approximately 15.2 billion yuan ($2.1 billion) in 2023, the localization rate for advanced photonic chip supply chains remained below 5% according to AskCI consultancy data 1.

This investment in photonics follows China’s previous semiconductor push that increased memory chip production from virtually zero to 5% of global output between 2019-2020 2.

The CHIPX facility’s 12,000 wafer annual capacity (yielding approximately 4.2 million chips) demonstrates significant scale in a critical technology area outside traditional silicon semiconductors.

This alternative path allows China to bypass certain US export restrictions while developing capabilities in quantum computing and next-generation communications that align with its strategic technology priorities.

2️⃣ US export controls create unintended innovation acceleration