Kista, Sweden – September 07, 2026 -- Sivers Semiconductors AB (STO: SIVE) will invest USD 30 million to expand its Indium Phosphide (InP) manufacturing facility in Glasgow, Scotland, targeting annual production of more than 100 million continuous-wave distributed feedback (CW DFB) lasers to meet surging demand from AI datacenter and optical networking customers.
Expansion timeline runs through fourth-quarter 2027
The build-out will begin in the second half of 2026 and become operational in Q4 2027, adding new process capabilities, greater automation and manufacturing flexibility to the existing Glasgow site.
Investment marks shift to Hybrid Manufacturing strategy
The move transitions Sivers from a Fab-Lite model to a Hybrid Manufacturing approach that combines expanded in-house InP production with external foundry, packaging and manufacturing partners based in Asia. The company says this structure is designed to deliver production scalability, geographic flexibility and supply-chain resilience while retaining core photonics capabilities internally.
Executives cite AI infrastructure build-out as demand driver
"The scale of today's AI infrastructure build-out is creating unprecedented demand across the optical supply chain," said Vickram Vathulya, President and CEO of Sivers Semiconductors. The company states its customers require significantly more laser production capacity along with assurance that supply will be available as their programs move toward volume production.
COO Neeraj Chopra said scaling photonics for AI infrastructure requires a manufacturing strategy built for flexibility, quality and long-term customer demand, adding that combining the Glasgow expansion with external foundry capacity allows the company to scale efficiently while supporting high-volume production as AI deployments accelerate.
Hyperscalers push optical interconnect requirements higher
Sivers points to hyperscale operators building larger AI clusters and moving toward higher-speed networking architectures as a key factor accelerating demand for advanced optical interconnect technologies. The company expects InP-based lasers and semiconductor optical amplifiers to play an increasingly important role in enabling high-performance, energy-efficient optical connectivity for these systems.
Sivers says the investment reflects increasing customer engagement across AI datacenter and advanced optical interconnect applications, and is intended to ensure manufacturing capacity is in place as customer programs advance toward volume production.