GlobalFoundries reportedly sees strong demand for Chinese optical modules

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US chipmaker GlobalFoundries says demand for Chinese optical modules is strong as more data centres are built, one of its top bosses told the South China Morning Post. Ann Cao reported the interview from Shanghai on Sunday.

Optical modules turn data into light so it can move quickly between servers in data centres. Chinese firms make nearly two-thirds of the world’s optical transceivers, according to research firm Counterpoint.

Shankaran Janardhanan runs the firm’s photonics and radio chip unit. He said this demand is part of why it has bet big on photonics, chips that use light to move data. He spoke at the company’s annual tech summit in Shanghai, the SCMP reported.

The firm is also growing in China to serve local buyers, according to the paper. In 2025, it agreed to make some car chips through a Chinese partner foundry for clients who need chips made in China.

Its photonics push includes the purchase of Singapore-based Advanced Micro Foundry in November 2025. After the deal, GlobalFoundries said it had become the largest pure-play silicon photonics foundry.

Meanwhile, its Asia Pacific head, Vincent Feng, said last week that the company is preparing a large capacity expansion driven by AI demand, the Taipei Times reported.

However, Chinese optics face pressure in the US. The FCC, the US telecoms regulator, is drafting a ban on them. Counterpoint has warned this could raise costs for US cloud firms such as Amazon and Microsoft.

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