News: Optoelectronics
18 May 2026
UK silicon photonics sector poised for growth, reckons CORNERSTONE survey
The UK’s silicon photonics (SiPh) sector is entering a critical inflection point, with strong industry intent and growing market demand creating a significant opportunity for the country to build key sovereign capabilities in a burgeoning tech sector, according to new market research by the CORNERSTONE Photonics Innovation Centre (C-PIC) — the UK’s dedicated Innovation and Knowledge Centre (IKC) for silicon photonics (an open-source, licence-free silicon photonics prototyping foundry, hosted at the University of Southampton in collaboration with the University of Glasgow, and the UK government’s Science and Technology Facilities Council).
Silicon photonics is fast becoming one of the most buoyant global technologies, with current projections of compound annual growth rate (CAGR) of 25–30%. In recent months the technology has come into sharp focus, as SiPh emerges as a clear solution to mitigate AI power consumption, prompting major investments from the likes of NVIDIA, and leading to calls from industry and leadership groups for investment and infrastructure to capitalize on momentum.
The market research, conducted via OnePoll, features insights from 100 UK-based decision makers who are currently developing/deploying SiPh chips or in the planning stages of doing so. The findings reveal a sector with a strong commercial appetite and identify key challenges that must be addressed to support the sector’s evolution.
Strong domestic ambition
Two-thirds (67%) express confidence in the UK’s ability to benefit from the SiPh opportunity, an encouraging signal amidst strong projections that the UK photonics industry at large could have an annual output of over £20bn in 2026. The market research indicates that, with the right infrastructure investment, the UK is positioned to gain substantially from this critical technology:
- 77% are currently developing or deploying in the UK, or plan to do so in the future, and 74% agree that a SiPh pilot line in the UK will accelerate innovation. This is a clear signal of strong foundations in early-stage SiPh development, a desire for long-term domestic pilot-line capabilities, and confidence in the sector’s future.
- 64% are already carrying out some manufacturing abroad, or plan to – demonstrating that further value could be retained in the UK with the right infrastructure in place.
Meanwhile, almost a third (32%) of respondents complained of high tariff costs creating barriers to developing SiPh prototypes, indicating that domestic prototyping could substantially increase if the UK meets demand for scale-up infrastructure that can support long-term growth. Given that SiPh is essential for energy-efficient AI, quantum scaling, future optical networks, and more, now is the right moment for the UK to invest in the infrastructure needed to make the most of this critical technology.
“Global investment in SiPh is accelerating – we’ve seen the scale of ambition from the US, with major federal and private commitments including NVIDIA’s flagship $6bn investments,” says professor Graham Reed, director, CORNERSTONE. “The UK has the talent, the expertise, and the market opportunity to make substantial gains in the sector, and CORNERSTONE’s market research demonstrates significant demand for domestic pilot-line capabilities.”
The case for a UK pilot line
Industry leaders are united in the belief that a domestic pilot line would accelerate the transition from R&D to commercial scale by providing the fabrication access, process development support, and integration capability needed to convert expressed intent into commercial output. The findings validate recent recommendations from the UK Council for Science and Technology regarding a national photonics roadmap and investment in a SiPh pilot line. Respondents say that a pilot line would help them to:
- significantly enhance sovereign tech capabilities (79%);
- accelerate innovation (74%);
- improve quality (50%);
- bring products to market faster (42%);
- reduce reliance on overseas foundries (40%).
“2024 projections from Future Markets puts the global SiPh market at least $46.5bn by 2035 as demand from AI infrastructure, data centers, and quantum technologies accelerate,” says CORNERSTONE’s deputy director Callum Littlejohns. “Commercializing products is the only way to get a slice of the pie. The case for support from the UK government is straightforward. A domestic pilot line is the logical next step to help companies scale their silicon photonics chips, translating directly into jobs, export revenue, and long-term technological sovereign capability.”
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www.cornerstone.sotonfab.co.uk/wp-content/uploads/2026/04/UK-Silicon-Photonics-Pilot-Line.pdf
