Mitsubishi Electric will commence mass production of its next-generation optical chips in January, responding to the increasing demand for faster data transmission in global data centers. The Tokyo-based company plans to increase its optical chip production capacity by 50% within the next year, aiming to capitalize on its established presence in the niche market of optical semiconductors.
In October, Mitsubishi Electric will begin shipping samples of its newly developed optical chips for data reception, supplementing its existing lineup for data transmission. These high-performance chips are essential for enhancing the speed and efficiency of data transfers within data centers, which rely on optical transceivers to convert electronic signals to optical ones and back again.
Holding a 50% share of the optical transmission chip market, Mitsubishi Electric is well-positioned to benefit from the projected growth in the optical device market, which is expected to triple to $12 billion by 2029. The company is focusing on the high-speed data transmission segment, where industry standards are rapidly advancing. Current transceiver chips from Mitsubishi Electric support data transfers at 200 gigabits per second (Gbps), with future capabilities expected to reach 1.6 terabits per second using multiple chips.
