Chinese chipmaker Hua Hong bets big on silicon photonics amid AI boom

South China Morning Post · Ann Cao · 2026-11-05 13:27 UTC

China’s No 2 contract chipmaker is aggressively expanding into silicon photonics technology, as its net profits surge 147 per cent.

China’s second-largest contract chipmaker, Hua Hong Grace Semiconductor, is aggressively expanding into silicon photonics, as the company looks to capture the next wave of the global artificial intelligence infrastructure boom.

Speaking on an earnings call with analysts on Thursday, Hua Hong chairman and president Bai Peng said the company planned to significantly expand its footprint in silicon photonics – a critical technology used in AI optical modules – during its next major capacity expansion in 2027.

“We want to participate in all silicon-based devices [inside optical modules],” Bai said, adding the sector is one of the two areas – along with power management chips – in which it wants to add “significantly more capacity”.

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