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COMPANY PROFILE / OPTICAL COMMUNICATIONS & PHOTONICS

TSMC
The foundry that has stepped into contract manufacturing of optical interconnect with COUPE, which stacks an electronic chip on a photonic one

TSMC sells no optical modules or optical components under its own brand. Its name still comes up in optical communications because it owns COUPE, a manufacturing technology that combines optical and electrical circuits into a single engine, and in April 2026 it announced that a co-packaged optics (CPO) solution using COUPE on substrate would begin production in 2026. At its July 2026 earnings conference the chairman and CEO said: "We started the production right now, and it will be ramped up." This profile confines the company-wide figures to a single table and sets out what TSMC makes in optics, whom it works with and how far it has got, using only TSMC's own official announcements, annual report and earnings conference, together with its partners' official announcements.

Sources: TSMC technology symposium announcements (April 2024, April 2025 and April 2026), the 2025 Annual Report (chapter 5), Form 20-F for the year ended December 2025, the transcript of the second-quarter 2026 earnings conference, and official announcements by NVIDIA, Ansys and Alchip, used as primary material. Last updated September 2026.

What this article covers
  1. TSMC in 30 seconds, and where it stands in optical communications and photonics
  2. The logo and how the name is written
  3. Where the company sits in optical communications and photonics
  4. Scale (the company as a whole, in brief)
  5. Resources committed to optical communications and photonics
  6. Track record so far
  7. Plans ahead
  8. What the company is aiming for in optical communications and photonics
  9. Partnership map
  10. Technologies, products and services
  11. The risks this company carries
  12. Glossary, references and claim-to-source audit

1. TSMC in 30 seconds, and where it stands in optical communications and photonics

LEGAL NAMETaiwan Semiconductor
Manufacturing Company Limited
It also has a Chinese-language name; this article uses TSMC throughout
HEADQUARTERSHsinchu, TaiwanHsinchu Science Park
LISTINGSTaiwan Stock Exchange 2330
NYSE: TSM
Traded in the U.S. as ADRs
CATEGORY IN THIS FIELDChips & foundriesSells no optical modules; manufactures optical engines under contract
WHICH PART OF OPTICSOptical interconnect
inside the data centre
Placing the optical input and output right next to switches and AI chips
CORE TECHNOLOGYCOUPEA 3D optical engine that stacks an electronic chip on a photonic chip
MILESTONE DISCLOSED200 Gbps
(with several customers)
Stated in the 2025 Annual Report. Test conditions not disclosed
START OF PRODUCTION2026
(CPO on substrate)
Announced April 2026; "started the production" said in July
The one thing to grasp first

Companies involved in optical communications fall into three broad types: optical components & modules, chips & foundries, and network systems & carriers. TSMC belongs to chips & foundries, and it handles light inside the data centre, specifically right beside the packages of switches and AI chips Sourced. It has nothing to do with long-haul networks or with optical fibre itself.

What TSMC provides is "a manufacturing process that stacks a photonic chip (PIC) and an electronic chip (EIC) into a single engine"; the design and sale of the optical engine are done by its customers. The 2025 Annual Report says the optical engine achieved "200 Gbps with several customers", but does not name them. Compared with Lumentum or InnoLight, which sell optical modules under their own brands, TSMC occupies a completely different position, even though all three are "optics companies".

2. The logo and how the name is written

The TSMC logo is a trademark of the company. We have not recreated it with generated imagery; the image was taken from TSMC's official website and is placed here as img/tsmc_logo.png (served as WebP and converted to PNG).

A note on names: the legal name is Taiwan Semiconductor Manufacturing Company Limited, and the company also has a Chinese-language name. The logo uses lower-case "tsmc", but this article follows common usage and writes TSMC in capitals throughout. "COUPE" is a registered trademark of TSMC, short for Compact Universal Photonic Engine, and official documents also write it as "TSMC-COUPE™".

Official site: https://www.tsmc.com/english

3. Where the company sits in optical communications and photonics

Three types of company in optical communications and photonics All are "optical communications companies", yet where they handle light differs completely Optical components & modules Chips & foundries Network systems & carriers Parts that emit, carry, detect light Chips linking electronics and light Networks built and run on light Lumentum / Coherent InnoLight / Ayar Labs and others NVIDIA / Broadcom TSMC / Intel and others NTT / Ciena Nokia / Cisco and others Mass-produces lasers and optics Owns the switches and GPUs Long-haul and network know-how Heavily reliant on big customers Tends to rely on outside optics Change inside data centres is fast TSMC sits in the middle, building customer-designed optical engines with its stacking technology No own-brand modules: it sells the process that stacks PIC and EIC, and packaging beside AI chips
Fig. 1 The three types of company in optical communications and photonics, and where TSMC sits. The classification is our own, and the example companies are drawn from those covered in this series Our calculation. That TSMC offers COUPE as a foundry is based on its technology symposium announcements of 2024 to 2026 and its 2025 Annual Report.

Within the same "chips & foundries" box, NVIDIA and Broadcom own the products where the light ends up, switches and GPUs. TSMC is the one that manufactures those products; the end products belong to its customers. TSMC's optics business is therefore directly governed by how quickly its customers adopt CPO Not yet confirmed. The idea of bringing optical signals right up to the electronic chip is covered in our explainers on co-packaged optics and on optical interconnect and SerDes.

4. Scale (the company as a whole, in brief)

The company as a whole is not the subject here, so we note only its size Sourced.

Measure (NT$ million)FY2023FY2024FY2025
Net revenue2,161,7362,894,3083,809,054
R&D expense182,370204,182246,427
R&D as a share of revenue8.5%7.1%6.5%
Regular employees (31 December)76,47883,82590,557
A caution

The figures above are for the whole company. They do not show the size of any optical communications or photonics business. TSMC discloses none of its optics-related revenue, investment or dedicated headcount Not yet confirmed. The Form 20-F for FY2025 (the annual report filed with the U.S. SEC) contains no mention of silicon photonics or COUPE at all. Its optics work is described in the annual report for Taiwanese shareholders (English edition) and in technology symposium announcements. At the July 2026 earnings conference, too, an analyst asked when COUPE would make a meaningful contribution to revenue, and the CEO gave neither a date nor an amount.

5. Resources committed to optical communications and photonics

Amounts and headcounts are not disclosed, but what the company is putting in can be read from the annual report and official announcements. As a matter of method, we always checked four things: people, money, external investment, and universities or public funding.

ResourceDetailsCategory
People (dedicated teams and staff)No dedicated optics organisation or headcount is stated. The annual report says COUPE is handled by corporate centralised R&D, as one of its 3D integration technologies alongside SoIC, CoWoS and SoWNot disclosed
Money (R&D)NT$246.4 billion company-wide (2025). The table of major R&D projects for 2026 has six items, "2nm", "A16", "A14 and beyond", "3DIC", "next-generation lithography" and "long-term research", and optics is not a separate itemSourced
Money (line investment)Capital spending on COUPE and CPONot disclosed
Investments, acquisitions and joint venturesNo optics-related investments, acquisitions or joint ventures appear in the annual report, the 20-F or official announcementsCould not be confirmed
Universities and research institutesThe annual report mentions long-standing partnerships with SRC in the United States and IMEC in Belgium, but these are not specific to opticsSourced
Public fundingNo award of government funding for optics R&D (in Taiwan, under the U.S. CHIPS Act or elsewhere) appears in the materials reviewedCould not be confirmed
Design ecosystemCOUPE is supported through the Open Innovation Platform (OIP), TSMC's framework with design tool vendors. In April 2024 Ansys announced a collaboration with TSMC on design and analysis software for COUPESourced
Research on light-receiving devicesThe annual report says it is developing an avalanche photodiode (APD) with a 7 µm pixel pitch for optical I/O, and has confirmed operation above 2 GHz with low power consumptionSourced
How to read the missing numbers

TSMC says about 89% of its R&D budget goes to the six items above Sourced. COUPE is a 3D integration technology, so we think it is most likely included under "3DIC", but the company does not say so Not yet confirmed. Either way, no budget set aside for optics alone can be read from outside.

6. Track record so far

WhenWhat happenedWhat it means
2021TSMC researchers propose the COUPE (COmpact Universal Photonic Engine) structure in a paper. It stacks the photonic and electronic chips, achieves low insertion loss with either grating or edge coupling, and is described as having no voids or mechanically weak pointsThe name and concept of COUPE are first made public, on TSMC's research site
April 2024Announces COUPE development at the North America Technology Symposium, with a plan to "qualify COUPE for small form factor pluggables in 2025" and integrate it into CoWoS as CPO in 2026The first official announcement of optics as a product plan
April 2024Ansys announces a collaboration with TSMC on multiphysics analysis for COUPE (optical input and output, photonic circuits, power, electromagnetics and thermal)Preparations for volume production begin on the design tool side
March 2025NVIDIA announces its CPO switches (Spectrum-X Photonics and Quantum-X Photonics). Its headline cites "Joint Inventions and Collaborations With TSMC" and others, and TSMC's CEO comments that the solution combines TSMC's chip manufacturing with SoIC 3D chip stackingThe first large outlet becomes public
April 2025At the North America Technology Symposium, presents "silicon photonics integration with TSMC's Compact Universal Photonic Engine (COUPE)" as one of the solutions complementing its logic technologyNow presented alongside its mainstream logic and packaging
September 2025Alchip and Ayar Labs announce a partnership on CPO using TSMC technologies including COUPE and SoIC, and show a scale model at TSMC's OIP forum the same monthA company other than NVIDIA publicly states it will use COUPE
2025According to the annual report, the COUPE optical engine achieved 200 Gbps with several customers, and the COUPE service is on track for volume production in 2026Performance confirmed with several customers (the report does not say whether these are volume products)
April 2026At the North America Technology Symposium, announces "a true co-packaged optics solution using COUPE on substrate beginning production in 2026". Compared with pluggables on board, it offers 2x power efficiency and 10x lower latency, and is featured in a 200 Gbps micro-ring modulatorNames the year volume production begins
July 2026At the second-quarter earnings conference, Chairman and CEO C.C. Wei says: "We started the production right now, and it will be ramped up", adding that COUPE "will become a fairly important technology in the next few years"The chief executive confirms verbally that production has begun
Gaps between plan and reality

The 2024 announcement planned to "qualify COUPE for small form factor pluggables in 2025", but we could not confirm from later official materials whether that qualification was completed Not yet confirmed. And while the 2024 plan had CPO in 2026 as "integration into CoWoS", what was announced as starting production in April 2026 is CPO "on substrate". The annual report says CPO for switches, which combines CoWoS and COUPE in one package, is "under development" Sourced. The accurate reading is that what began in 2026 is not the whole plan, but the form that was easier to achieve first.

7. Plans ahead

CPO ON SUBSTRATEProduction starts 2026Announced April 2026; "started the production" said in July
CPO INTEGRATED WITH COWOSUnder developmentFor switches. No volume production date in the materials
LIGHT-RECEIVING DEVICEAPD (7 µm pixel)In development for optical I/O. Volume timing not disclosed
RELATED PACKAGING PLAN14-reticle CoWoS
in 2028
Not optics, but a larger platform on which CPO would sit

TSMC has announced that a 5.5-reticle CoWoS is now in production, with a 14-reticle version to follow in 2028 and larger ones in 2029 Sourced. CPO integrated with CoWoS would place the optical input and output on top of this platform, so the plan to enlarge packages and the plan for optics can be read as lying on the same path Not yet confirmed.

What could not be confirmed

None of the following appears in TSMC's official materials Not yet confirmed.

COUPE and CPO revenue and its share of the total / production capacity (wafers per month and so on) / production sites / optics-related capital spending / the names of customers that achieved 200 Gbps (other than NVIDIA) / the year volume production starts for CPO integrated with CoWoS / who supplies the light source (laser). Figures of the "TSMC's silicon photonics revenue will reach US$X in year Y" kind come from research firms or press reports, and this article does not use them.

8. What the company is aiming for in optical communications and photonics

This section includes things the company does not say directly. We set them out as inferences within what the primary sources support, with the evidence for each.

What the evidence suggestsPrimary information it rests onCategory
Optics is sold not as a standalone business but as part of its 3D integration services (3DFabric)The annual report places COUPE within "3DFabric" alongside SoIC, CoWoS and SoW. No separate optics business unit is mentionedSourced
The aim is to bring light right inside the AI chip's packageThe annual report says the optical engine can be co-packaged with HPC chips, and that CPO for switches integrated with CoWoS is under developmentInference
For now, the main outlet is NVIDIA's CPO switchesThe only customer named in primary sources is NVIDIA, in NVIDIA's own announcement. The annual report says "several customers" but gives no namesInference
It positions itself not to compete with optical module makers but to manufacture for them tooCompanies that design their own optical I/O, such as Alchip and Ayar Labs, have announced they will use COUPE. Nothing says TSMC itself will sell optical modulesInference
It intends to grow COUPE into a key technology over several yearsThe CEO said at the earnings conference that it "will become a fairly important technology in the next few years". No revenue target was givenSourced
One piece of evidence in more detail

TSMC consistently describes optics not as "optical technology" but as an application of its chip-stacking technology. The 2024 announcement says COUPE uses SoIC-X to stack the electrical die on top of the photonic die, and the 2025 Annual Report says the COUPE service uses SoIC chip-on-wafer (CoW) stacking to integrate the silicon photonics chip with the electrical control chip Sourced. The CEO's comment in NVIDIA's announcement likewise spoke of combining cutting-edge chip manufacturing with TSMC-SoIC 3D chip stacking. Lasers and optical fibre appear in none of these materials. From this we read that TSMC's winning formula rests not on competing on optical device performance but on stacking and packaging yield and volume capacity Not yet confirmed.

9. Partnership map

Optical communications and photonics partnerships centred on TSMC Only relationships stated in official announcements by TSMC and its partners and in its annual report Product customers (navy) Design/packaging partners Research links, not optics-only (dotted) TSMC Foundry NVIDIA Joint inventions on CPO switches Announced by NVIDIA, March 2025 Alchip + Ayar Labs Developing CPO using COUPE, SoIC Announced by Alchip, Sept 2025 Ansys Multiphysics design for COUPE Announced by Ansys, April 2024 IMEC / SRC Long-term research (not optics-only) TSMC annual report Unnamed customers 200 Gbps achieved (2025)
Fig. 2 Optical communications and photonics partnerships centred on TSMC. Sources: official announcements by NVIDIA (18 March 2025), Ansys (24 April 2024) and Alchip (8 and 26 September 2025), and TSMC's 2025 Annual Report. NVIDIA's announcement also lists many optical component companies besides TSMC, but they are NVIDIA's suppliers and no direct relationship with TSMC is stated, so they are not shown. The relationships with IMEC and SRC are research partnerships described in the annual report and are not specific to optics, so they are drawn dotted.

10. Technologies, products and services

The optics-related technologies TSMC has disclosed are three: COUPE (stacked optical engines), CPO built with COUPE and light-receiving devices (APDs). Nothing is said about light-emitting devices (lasers).

ItemWhat the official materials sayIn production or in development
COUPE structureUses SoIC-X chip stacking to stack the electrical die on top of the photonic die. Described as offering the lowest die-to-die impedance and higher energy efficiency than conventional stacking methodsProduction started 2026
COUPE performanceAs an optical engine, achieved 200 Gbps with several customers (2025). Number of lanes and reach not disclosedStated as achieved with several customers (whether in volume products is unclear)
CPO on substratePutting the optical engine in the package gives 2x power efficiency and 10x lower latency compared with pluggables on board (company claim). Featured in a 200 Gbps micro-ring modulatorProduction started 2026
CPO integrated with CoWoSCombines an interposer-based CoW module and COUPE-based optical I/O in one package. For ultra-high-end network switchesIn development
Light-receiving devicesAn avalanche photodiode with a 7 µm pixel pitch for optical I/O, stated to meet industry requirements with operation above 2 GHz and very low power. Separately, a Ge/Si single-photon avalanche diode (SPAD) with dark count rate cut by about a factor of ten (presented at IEDM 2025)In development
Design supportDesign and analysis flows for COUPE through OIP, TSMC's framework with design tool vendors. Ansys says its Lumerical (photonic circuit simulator) circuit models were co-designed with TSMC's PDK (the set of process information used for design)Available

"2x power efficiency and 10x lower latency" is a comparison TSMC itself made, and the conditions (reach, lane count, generation of the pluggable product compared) have not been published Sourced. Nor did the official materials we reviewed say anything about compliance with standards such as IEEE 802.3 or OIF specifications Not yet confirmed. For the basics of micro-ring modulators and photodetectors, see our explainers on wavelength multiplexing and micro-rings, on photodetectors and on silicon photonics.

A materials engineer's view: what stacking the electronic chip "directly" on the photonic chip means

The essence of COUPE is that the electrical and photonic dies are stacked directly with SoIC bonding rather than with solder bumps Sourced. The shorter the distance between the modulator and the circuit that drives it, the lower the parasitic capacitance of the wiring and the less energy it takes to send each bit. That is the point TSMC stresses when it says the die-to-die impedance is the lowest.

From the materials and thermal side, however, the difficulties multiply. A micro-ring modulator's resonant wavelength shifts with even a small change in temperature, so in a structure that places a heat-generating electronic chip directly above it, thermal management decides whether the product succeeds Not yet confirmed. That the Ansys collaboration covered thermal analysis as well as optical input and output and power, and that TSMC's 2021 paper stressed a structure with no voids or mechanically weak points, can be read as recognition that the reliability of the stack and its bonded interfaces is the key to volume production.

11. The risks this company carries

RiskDetailsCategory
Progress cannot be verified from outsideOptics-related revenue, capacity, investment and customer numbers are all undisclosed. The CEO did not give a date for a revenue contribution eitherSourced
The shape of the plan has changedThe 2024 plan was "CPO integrated into CoWoS in 2026", but what started production in 2026 is CPO on substrate. The CoWoS-integrated form remains in developmentSourced
Dependence on customers' adoption paceTSMC does not own the outlets for light (switches and GPUs). How fast CPO replaces pluggables is decided by its customers and, beyond them, by data centre operatorsInference
Skew towards one customerThe only large optics customer named in primary sources is NVIDIA. The annual report mentions several customers but does not name themInference
No light source of its ownThe official materials say nothing about lasers. The light source appears to depend on customers' or other companies' components, so part of CPO's reliability and serviceability is determined outside TSMCInference
Thermal and bonding reliabilityThe structure places temperature-sensitive optical devices under a heat-generating chip, so the reliability of the stacked interfaces feeds straight into yieldInference
Competition from other foundriesGlobalFoundries, Tower Semiconductor and UMC, all covered in this series, have also officially put forward silicon photonics foundry servicesOur calculation

12. Glossary

COUPE
Compact Universal Photonic Engine: TSMC's optical engine technology, which stacks an electronic chip on a photonic chip to form one engine.
CPO (co-packaged optics)
Placing the optical transmit and receive functions inside the same package as a switch or AI chip. The wiring is shorter than with pluggable modules on the board.
PIC / EIC
A PIC is a chip with optical circuits built in; an EIC is a chip with electrical circuits (driving modulators and amplifying received signals).
SoIC
TSMC's chip-stacking technology, which joins chips directly with fine-pitch bonds and stacks them vertically.
CoWoS
TSMC's 2.5D packaging technology, which places AI chips and HBM side by side on a large intermediate substrate (interposer).
Micro-ring modulator
A device that switches light on and off with an electrical signal using a ring-shaped light path thinner than a hair. Small and low-power but sensitive to temperature.
APD
Avalanche photodiode: a light-receiving device that amplifies the received light internally as it converts it into an electrical signal.
OIP
Open Innovation Platform: TSMC's framework for supporting customer designs together with design tool and IP vendors.
Concept diagram: optical engines, each an electronic chip stacked on a photonic chip, lined up along the edge of an AI chip package
Fig. 3 Concept diagram of TSMC's COUPE and CPO (AI-generated concept image; it does not depict actual equipment or products).

13. References

  1. TSMC Press release, "TSMC Debuts A13 Technology at 2026 North America Technology Symposium" (issued 23 April 2026). Production of CPO using COUPE on substrate from 2026, 2x power efficiency and 10x lower latency, the 200 Gbps micro-ring modulator, and plans for larger CoWoS. https://pr.tsmc.com/english/news/3302
  2. TSMC Press release, "TSMC Unveils Next-Generation A14 Process at North America Technology Symposium" (issued 24 April 2025). Presentation of silicon photonics integration with COUPE. https://pr.tsmc.com/english/news/3228
  3. TSMC Press release, "TSMC Celebrates 30th North America Technology Symposium with Innovations Powering AI with Silicon Leadership" (issued 24 April 2024). The COUPE structure (SoIC-X stacking the electrical die on the photonic die) and the plan for pluggable qualification in 2025 and CoWoS-integrated CPO in 2026. https://pr.tsmc.com/english/news/3136
  4. TSMC 2025 Annual Report, chapter 5 (operations). COUPE reaching 200 Gbps and the 2026 volume production plan, development of CoWoS-integrated CPO, APDs and SPADs, R&D expenditure, major R&D projects and partnerships with SRC and IMEC. https://investor.tsmc.com/static/annualReports/2025/english/pdf/2025_tsmc_ar_e_ch5.pdf
  5. TSMC Form 20-F for the fiscal year ended December 31, 2025 (filed with the U.S. SEC). Net revenue, R&D expense, R&D as a share of revenue and regular headcount. https://www.sec.gov/Archives/edgar/data/1046179/000162828026025362/tsm-20251231.htm
  6. TSMC Transcript of the second-quarter 2026 earnings conference (held 16 July 2026; edited transcript prepared by LSEG and published by TSMC on its investor site). Comments by Chairman and CEO C.C. Wei on the start of COUPE production and its outlook. https://investor.tsmc.com/english/encrypt/files/encrypt_file/reports/2026-08/3e494f0c14dd0890f897aa044415e21d93486cc4/TSMC%202Q26%20Transcript.pdf
  7. TSMC Research site, "Heterogeneous Integration of a Compact Universal Photonic Engine for Silicon Photonics Applications in HPC" (page presenting a 2021 paper). The proposal of COUPE and its structural features. https://research.tsmc.com/page/on-chip-interconnect/14.html
  8. NVIDIA Press release, "NVIDIA Announces Spectrum-X Photonics, Co-Packaged Optics Networking Switches to Scale AI Factories to Millions of GPUs" (18 March 2025). Joint inventions and collaboration with TSMC and others, a comment from TSMC's CEO, and product availability. https://nvidianews.nvidia.com/news/nvidia-spectrum-x-co-packaged-optics-networking-switches-ai-factories
  9. Ansys Press release, "Ansys and TSMC Enable a Multiphysics Platform for Optics and Photonics" (24 April 2024). Collaboration on multiphysics analysis for COUPE and a comment from the head of TSMC's design infrastructure management division. https://ansys.synopsys.com/news-center/press-releases/4-24-24-ansys-collaborates-with-tsmc-coupe-on-multiphysics
  10. Alchip Technologies Press release, "Ayar Labs and Alchip to Scale AI Infrastructure with Co-Packaged Optics" (8 September 2025). Partnership on CPO using TSMC's COUPE, SoIC and other technologies. https://www.alchip.com/en/Newsroom/AyarLabsandAlchiptoScaleAIInfrastructure
  11. Alchip Technologies Press release, "Alchip and Ayar Labs Unveil Co-Packaged Optics for AI Datacenter Scale-Up" (26 September 2025). A scale model of the CPO solution shown at the 2025 TSMC North America OIP Ecosystem Forum. https://www.alchip.com/en/Newsroom/AlchipandAyarLabsUnveilCPOforAIDatacenterScale-Up
  12. TSMC Official website (source of the company name style and the logo image). https://www.tsmc.com/english

14. Claim-to-source audit

Claim in the articleCategorySource
Legal name, listing venues, net revenue, R&D expense, R&D ratio and regular headcount (2023 to 2025)SourcedReference 5 https://www.sec.gov/Archives/edgar/data/1046179/000162828026025362/tsm-20251231.htm
2025 R&D expenditure of NT$246,427,264 thousand; about 89% going to six major R&D projects; optics not a separate itemSourcedReference 4 https://investor.tsmc.com/static/annualReports/2025/english/pdf/2025_tsmc_ar_e_ch5.pdf
No mention of silicon photonics or COUPE in the 20-FSourcedReference 5 (confirmed by this article's full-text search) https://www.sec.gov/Archives/edgar/data/1046179/000162828026025362/tsm-20251231.htm
COUPE stacks the electrical die on the photonic die using SoIC-X, with the lowest die-to-die impedanceSourcedReference 3 https://pr.tsmc.com/english/news/3136
The 2024 plan (pluggable qualification in 2025, CoWoS-integrated CPO in 2026)SourcedReference 3 https://pr.tsmc.com/english/news/3136
Presentation of silicon photonics integration with COUPE at the 2025 symposiumSourcedReference 2 https://pr.tsmc.com/english/news/3228
The COUPE optical engine achieved 200 Gbps with several customers (2025), volume production planned for 2026, CoWoS-integrated CPO for switches under developmentSourcedReference 4 https://investor.tsmc.com/static/annualReports/2025/english/pdf/2025_tsmc_ar_e_ch5.pdf
COUPE is part of 3DFabric and handled by corporate centralised R&D; partnerships with SRC and IMECSourcedReference 4 https://investor.tsmc.com/static/annualReports/2025/english/pdf/2025_tsmc_ar_e_ch5.pdf
APD for optical I/O (7 µm, above 2 GHz) and Ge/Si SPAD with dark count rate cut by about ten timesSourcedReference 4 https://investor.tsmc.com/static/annualReports/2025/english/pdf/2025_tsmc_ar_e_ch5.pdf
Production of CPO on substrate from 2026, 2x power efficiency and 10x lower latency, 200 Gbps micro-ring modulatorSourcedReference 1 https://pr.tsmc.com/english/news/3302
5.5-reticle CoWoS in production, 14-reticle version in 2028 and larger ones in 2029SourcedReference 1 https://pr.tsmc.com/english/news/3302
The CEO's remarks "We started the production right now" and "a fairly important technology in the next few years", and his not giving a date for a revenue contributionSourcedReference 6 https://investor.tsmc.com/english/encrypt/files/encrypt_file/reports/2026-08/3e494f0c14dd0890f897aa044415e21d93486cc4/TSMC%202Q26%20Transcript.pdf
COUPE proposed in a 2021 paper and described as a low-insertion-loss structure without voidsSourcedReference 7 https://research.tsmc.com/page/on-chip-interconnect/14.html
Joint inventions and collaboration with TSMC on NVIDIA's CPO switches, and the comment from TSMC's CEOSourcedReference 8 https://nvidianews.nvidia.com/news/nvidia-spectrum-x-co-packaged-optics-networking-switches-ai-factories
Collaboration with Ansys on multiphysics analysis for COUPE (including thermal), and co-design of Lumerical models with the PDKSourcedReference 9 https://ansys.synopsys.com/news-center/press-releases/4-24-24-ansys-collaborates-with-tsmc-coupe-on-multiphysics
Alchip and Ayar Labs partner on CPO using COUPE and SoIC and show a model at the OIP forumSourcedReferences 10 and 11 https://www.alchip.com/en/Newsroom/AyarLabsandAlchiptoScaleAIInfrastructure
The three types of optical communications companyOur calculationOur own classification. Example companies drawn from those covered in this series
Optics-related revenue, capacity, production sites, capital spending, dedicated staff, customer names (other than NVIDIA), and the supplier of the light sourceNot yet confirmedNot stated in references 1 to 6. Research-firm and press figures are not used https://investor.tsmc.com/static/annualReports/2025/english/pdf/2025_tsmc_ar_e_ch5.pdf
Whether the 2025 pluggable qualification was completedNot yet confirmedNot stated in references 1, 2 and 4. This article does not conclude either way https://pr.tsmc.com/english/news/3302
Optics-related investments, acquisitions and joint ventures; public funding specific to opticsNot yet confirmedNot stated in references 4 and 5. This article does not conclude that they do not exist either https://www.sec.gov/Archives/edgar/data/1046179/000162828026025362/tsm-20251231.htm
Compliance with standards (IEEE 802.3, OIF and others)Not yet confirmedNot stated in references 1 to 4 https://pr.tsmc.com/english/news/3302
The reading that the COUPE budget is most likely included under "3DIC"InferenceThis article's interpretation of the table of major R&D projects
The reading that 2026 production is part of the plan, starting with the form easier to achieveInferenceThis article's interpretation from comparing the plan in reference 3 with references 1 and 4
The reading that the package-enlargement plan and the optics plan lie on the same pathInferenceThis article's interpretation of references 1 and 4
The readings that the aim is to bring light inside the AI chip package, that NVIDIA is the main outlet for now, and that TSMC positions itself to manufacture for optical module makers tooInferenceThis article's interpretation of references 4, 8 and 10
The reading that its winning formula lies in stacking and packaging volume capacity rather than optical device performanceInferenceThis article's interpretation of what references 3, 4 and 8 have in common
The temperature sensitivity of micro-rings and the difficulty of thermal management when stacking a heat-generating chipInferenceThis article's commentary based on the general properties of such devices. Not something TSMC has stated
The risks of dependence on customers' adoption pace, skew towards one customer, having no light source, and thermal and bonding reliabilityInferenceThis article's interpretation of the partnership structure and published information
Other foundries also putting forward silicon photonics foundry servicesOur calculationOur own summary, based on the profiles of each company in this series

Last updated 25 September 2026 / Troy Technical
Every figure in this article comes from TSMC's official announcements, annual report, U.S. SEC filing and earnings conference transcript, and from its partners' official announcements. No research-firm estimates or press-based figures have been used. Passages marked "Inference" are this article's interpretation of the primary sources, not statements made by the company.

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