Sivers invests $30M to expand InP laser manufacturing for AI data centers

Sivers Semiconductors is investing USD 30 million to expand its Indium Phosphide (InP) manufacturing facility in Glasgow, Scotland, aiming to add photonics capacity for AI data center and optical networking deployments.

The Glasgow expansion is expected to lift annual output capacity to more than 100 million CW DFB lasers once complete, while adding new process capabilities, increased automation, and greater manufacturing flexibility. The expansion program is slated to start in the second half of 2026 and is expected to be operational in the fourth quarter of 2027.

For data center engineers, the immediate takeaway is lead-time and scale: optical interconnect supply has to ramp in step with cluster growth, and lasers are a foundational input for high-speed optics. If Sivers hits its capacity targets on schedule, it could help reduce supply constraints as AI infrastructure programs move toward higher-speed networking architectures.

The expansion is also tied to a shift in how Sivers plans to build product. The company is moving from a Fab-Lite model to what it calls a Hybrid Manufacturing strategy, combining expanded in-house manufacturing with external foundry, packaging, and manufacturing partners.

“Our customers need significantly more laser production capacity and, just as importantly, the confidence that supply will be there when their programs ramp,” said Vickram Vathulya, President and CEO of Sivers Semiconductors.

Neeraj Chopra, COO of Sivers Semiconductors, added: “By combining our planned expansion in Glasgow with the manufacturing capacity of our external foundry partners, we can scale efficiently while maintaining the supply flexibility our customers need.”

Sivers said the Glasgow expansion will complement its broader manufacturing ecosystem, including foundry, packaging, and manufacturing partners in Asia, with the goal of improving production scalability, geographic flexibility, and supply-chain resilience while maintaining in-house manufacturing for its core photonics technologies.

Sivers Semiconductors has positioned the investment around anticipated AI infrastructure customer production ramps and growing demand across the optical supply chain.