Semiconductor Partners Expand TFLN Chiplet Foundry Capacity
Foundry providers are scaling manufacturing for TFLN chiplets to support high-speed optical data center connections.
Updated on Oct. 23, 2026 in Semiconductors
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Following a March 12, 2026, partnership announcement, UMC and Wavetek are scaling foundry capacity for Thin-Film Lithium Niobate (TFLN) chiplets. These components are essential for meeting the power and bandwidth demands of modern data center optical links.
Why it matters
TFLN technology is critical for next-generation optical connections where copper cabling faces signal integrity limits at high speeds. By bonding lithium niobate to base materials, the industry can create high-performance modulators that encode signals onto light.
The production process utilizes 6-inch CMOS lines and new 8-inch wafer capacity to support modulators with bandwidths exceeding 100 GHz. These devices leverage PAM4 modulation to achieve data rates of 400 Gbps per channel.
The players
UMC
United Microelectronics Corporation is a global semiconductor foundry provider that is expanding capacity to support new chiplet production standards.
Wavetek
Wavetek is a semiconductor technology firm that transitioned TFLN production capabilities onto 6-inch CMOS manufacturing lines.
HyperLight
HyperLight is a specialist developer providing the TFLN platform technology utilized in the new foundry partnership.
Murata Manufacturing
Murata Manufacturing is an electronics component company currently developing TFLN-based modulators for high-bandwidth data center applications.
The details
TFLN is produced by bonding single-crystal lithium niobate to base materials, a process requiring complex ion slicing because the material is difficult to etch. Voltage is applied to change the refractive index, effectively encoding signals onto light paths to overcome transmission bottlenecks.
Timeline
March 12, 2026: UMC, Wavetek and HyperLight announced their partnership.
June 2026: Murata Manufacturing released its development roadmap.
Q4 2026: Murata expects to receive its initial TFLN modulator samples.
2028: Murata targets the start of mass production for its modulator device.
2032: Murata targets the integration of optical, electrical and thermal functions.
The Tech Race
The transition to TFLN represents a major shift from legacy copper connections to integrated optical solutions capable of supporting higher transmission speeds. This evolution is necessary to maintain the scaling trajectories set by PAM4 modulation in modern data center infrastructure.
As data centers adopt these higher-bandwidth optical modules, users can expect more efficient cloud services and improved power usage effectiveness in digital infrastructure. These technical advancements ultimately support faster, more reliable internet and data processing speeds for the average consumer.
The takeaway
The move toward TFLN chiplets marks a definitive step away from the physical limits of copper wiring in high-capacity data centers. Industry stakeholders should watch for 2026 testing results as a key indicator of readiness for 400 Gbps and faster optical deployment.
Further reading
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