Silicon photonics growth is hitting scale-up roadblocks, CORNERSTONE study finds

A new CORNERSTONE market study says silicon photonics companies in Europe and the U.S. are being slowed by weak access to prototyping and scale-up infrastructure, even as governments and investors pour more attention into the sector. The findings point to faster commercialization, earlier revenue and stronger sovereign tech capabilities if those bottlenecks are fixed.

Why it matters: - Silicon photonics is projected to generate at least $46.5 billion in revenue by 2035. - The sector is gaining importance in national technology strategies because it can help reduce AI power consumption and support quantum ambitions. - Delays in prototyping and scale-up infrastructure could slow commercialization, job creation and revenue growth across key markets.

What happened: - CORNERSTONE Photonics Innovation Centre published new market research based on an online survey of 500 decision-makers in the UK, U.S., the Netherlands, Germany and Spain. - The respondents were either developing or deploying silicon photonics chips, or planning to do so. - The survey found multiple barriers to commercialization, led by manufacturing access and weak scale-up infrastructure. - CORNERSTONE said the findings show both the obstacles and the economic upside if those barriers are removed.

The details: - 59% of respondents said their country lacks the infrastructure needed to move from research to commercialization. - 67% said scale-up infrastructure is key to strengthening sovereign tech capabilities. - 66% identified manufacturing access as the main roadblock to commercialization. - 27% said they experienced lengthy foundry turnaround times. - 31% said product roadmaps were delayed, and those delays caused average financial losses of $2.7 million over the same period. - Nearly half of respondents globally, 48%, said they could start generating commercial revenue 7–12 months earlier if prototyping cycles were accelerated by 25%. - The study was conducted by OnePoll between March 19 and March 31, 2026, under the Market Research Society code of conduct. - CORNERSTONE said the survey used double opt-in participants and included data-quality checks such as screening for speeders, contradictory answers, duplicate IP addresses and trap-question failures.

Between the lines: - Governments are moving faster on semiconductor sovereignty, and silicon photonics is becoming part of that policy push. - The European Commission this month proposed an EU Chips Act 2.0, and 54% of respondents across the Netherlands, Germany and Spain said the current EU Chips Joint Undertaking does not go far enough for silicon photonics companies. - In the UK, the government last week launched its AI Hardware Plan and in March pledged £2 billion to strengthen quantum capabilities. - That policy backdrop helps explain why the industry is pressing for domestic pilot lines and other shared infrastructure instead of relying only on commercial foundries. - CORNERSTONE Deputy Director Callum Littlejohns said the sector is close to landmark growth but faces barriers to scale-up that must be urgently addressed. - Littlejohns also said CORNERSTONE aims to remove barriers through an open-source model and rapid, flexible prototyping, but that companies need critical scale-up infrastructure to avoid a commercialization bottleneck.

What's next: - In the UK, 64% of respondents said their organization is currently developing silicon photonics chips for quantum technologies, and 56% said they are doing so for AI hardware. - 76% of UK respondents said national scale-up infrastructure would accelerate company growth and reduce the effect of tariffs. - 32% said tariffs are already affecting their organizations. - 42% of UK businesses face skills shortages, making domestic infrastructure a potential tool for retention. - 24% of UK respondents said they lost staff overseas in the last 24 months. - 55% said they personally plan to move abroad or already have. - CORNERSTONE said a domestic pilot line is critical to bridge the gap between lab-scale prototypes and full commercial production. - The organization also said a pilot line would help the UK capitalize on its R&D base and the recommendations in the Council for Science and Technology’s February letter to the Prime Minister.

The bottom line: - Silicon photonics demand is rising, but the sector’s next stage depends on whether governments and industry can build the infrastructure to turn prototypes into products faster.