Silicon Photonics 2021 Market & Technology Report by Yole ...

1 From Technologies to Markets 2021 Silicon PhotonicsCourtesy of ArekSochaMarket and Technology Report 2021 Sample22 GLOSSARY AND DEFINITIONS AOC: ActiveOpticalCable APD: AvalanchePhotoDiode ASP: AverageSellingPrice COBO: ConsortiumforOn-BoardOptics DC: DataCenter DML: DirectlyModulatedLaser EEL: Edge-EmittingLaser EIC: ElectricalIC EML: Electro-absorptionModulatorLaser CAGR: CompoundAnnualGrowthRate HPC: High-PerformanceComputer IC: IntegratedCircuit InP: IndiumPhosphide IP: IntellectualProperty LiDAR: LightDetectionandRanging MEMS: MicroElectro-MechanicalSystems MOS: MetalOxideSemiconductor MSA: Multi-SupplierAgreement OEO:OpticalElectricalOptical OIC: OpticalIC OXC: OpticalCross-Connect PIC: PhotonicIntegratedCircuit ROSA: ReceiverOpticalSub-Assembly SEL:Surface-EmittingLaser SiN: SiliconNitride SiPh: SiliconPhotonics SOI: Silicon -on-Insulator TIA:TransimpedanceAmplifier TOSA: TransmitterOpticalSub-Assembly VC:VentureCapital VCSEL: VerticalCavitySurface-EmittingLasers VOA: VariableOpticalAttenuator WBG.

2 WideBandGapSilicon Photonics 2021 | Sample | | 202133 GLOSSARY AND DEFINITIONSS pecific to optical communicationModulationNRZNon-Return to ZeroPAMP ulse Amplitude ModulationQAMQ uadrature Amplitude ModulationMultiplexingCWDMC oarse Wavelength Division MultiplexingDWDMD ense Wavelength Division MultiplexingWDMW avelength Division MultiplexingFiberMMFM ulti-Mode FiberPSMP arallel Single ModeSMFS ingle-Mode FiberForm factorCFPC Form-Factor PluggableQSFPQuad Small Form-Factor PluggableSFPS mall Form-Factor PluggableSilicon Photonics 2021 | Sample | | 202144 Glossaryanddefinitions2 Tableof contents4 Reportscope6 Methodologiesanddefinitions8 Abouttheauthors9 Companiescitedin thisreport11 Whatwegotright,whatwegotwrong12 2020- 2021 Siliconphotonics- noteworthynews14 YoleGroupof Companies- RelatedReports16 Executivesummary18oThree-pagesummary Context55oGeneralcontextoHistoricalpersp ectiveoPhotonsvs. electronsoBuildingblocksoMotivationsfors iliconphotonicsoComparisonof siliconphotonicstootherPICplatforms Marketforecasts66oGeneralforecastsoLong- termforecastsoDatacenterforecastsSilicon Photonics 2021 | Sample | | 2021 TABLE OF CONTENTS (1/2) Markettrends94oOpticalcommunicationo5 GinfrastructureoLiDARandFiberOpticalGyro scope(FOG)oE- nosesoConsumerhealthcareoHealthcare/Medi caloComputing Marketshareandsupplychain150oPlayersandm arketsharesoSupplychainoInvestmentsoRese archinstitutes55 Silicon Photonics 2021 | Sample | | 2021 TABLE OF CONTENTS (2/2) Technologytrends182oOpticalcommunication oLiDARoGassensorsande-nosesoConsumerheal thcareoHealthcareoComputingoLasersoManuf acturingoPackagingoMaterials ReverseCosting - Structure,Process,andCostanalyses240oInt el100 GPSM4 SiPhtransceiveroIntel100 GCWDM4 SiPhtransceiver Outlook243oRoadmapforsiliconphotonicsoCo nclusions Howtouseourdata?

3 246 YoleCorporatePresentation24766 Report SCOPE (1/2)PlatformModulesCourtesy of LuxteraOptical communicationHealthcareFOG: Fiber Optic GyroscopeHPC: High performance computingOCT: Optical Coherent TomographyLiDARFOGI mmunoassaysSilicon photonicsCourtesy of IntelCourtesy of SiLCCourtesy of GenalyteCourtesy of OCTCHIPC ourtesy of Optics ExpressIncluding optical transceivers, co-packaged photonic engines Silicon Photonics 2021 | Sample | | 2021 Consumer healthcarePhotonic computingE-nosesCourtesy of AryballeCourtesy of Rockley PhotonicsCourtesy of Nature / iPronicsQuantum computingCourtesy of MIT Lincoln LaboratoryDisaggregated datacenterOptical interconnects for HPC77 Report SCOPE (2/2) devices that are beyond scopePlatforms that are integrated with Silicon photonicsOptical MEMSMEMS matrix optical switches Courtesy of DiConFiberopticsLionix(SiN)TEEM (glass)Infinera (InP)Lightwave Logic (polymer)AWG (Silica PLC)LiNbO3 InPSiNGlassPolymerSilica PLCLiNbO3 InPis commonly used for lasersSiN is often used for waveguidesGlass is frequently used for interconnectsA comparison with other platforms is presented in this Report Yours needs are out of the Report scope?

4 Contact us for a custom: Silicon Photonics 2021 | Sample | | 202188 METHODOLOGIES & DEFINITIONSM arketVolume (in Munits)ASP (in $)Revenue (in $M)Yole s Market forecast model is based on the matching of several sourcesInformation AggregationPreexistinginformationSilicon Photonics 2021 | Sample | | 202199 Alexis DebrayAlexisDebray, , is a SeniorAnalystatYoleD veloppement(Yole), dedicatedtotheproductionoftechnology& marketreportsandcustomconsultingprojects in thefieldsof Photonics ,Sensing, , Alexisspent17yearsin Japan. Heworkedfor2 yearsat theUniversityof Tokyodevelopingexpertisein MEMS technologiesandthenfor15yearsat CanonInc. as a researchengineer,wherehecontributedtonum erousdevelopmentalprojectsfocusedonMEMS devices ,lingualprehension, theauthorof variousscientificpublicationsandpatents. HegraduatedfromENSICAEN(France)andwasawa rdeda MalingeJean-LouisMalingeis anaccomplishedbusinessmanagementexecutiv ewithextensiveexperienceasa GeneralManagerandCEOin ,haslednumerousacquisitionprojects,andal somanagedthecreationof a successfuljoint-venturein currentlya Directorontheboardsof EGIDEG roup,POETT echnologies, ,anearly-stageventurecapitalfirmwithnear ly$2 CEOofKoturafrom2004- 2013,whenKoturawasacquiredbyMellanox.

5 A globalleaderinsiliconphotonics,Koturades igns,manufactures, ,Jean-Louisservedas VicePresident- OpticalNetworkingProductsforCorning,Inc. Hisotherpriorexperienceincludesservingas TechnologyDirectorwithAmphenolandThompso nCSFin fromMITS loanSchoolinBoston,Massachusetts. HealsoholdsanEngineeringdegreefromtheIns titutNationaldesSciencesAppliqu esin Rennes, Photonics 2021 | Sample | | 2021 Biographies & contact informationABOUT THE AUTHORS1010Dr. Eric MounierWithmorethan25+ years experiencewithinthesemiconductorindustry , DirectorofMarketResearchat YoleD veloppement(Yole). Ericprovidesdailyin-depthinsightsintocur rentandfuturesemiconductortrends,markets andinnovativetechnologies(suchas Quantumcomputing,Si Photonics ,newsensingtechnologies, ). Basedonrelevantmethodologicalexpertisean da strongtechnologicalbackground,heworksclo selywithalltheteamsatYoletopointoutdisru ptivetechnologiesandanalyzeandpresentbus inessopportunitiesthroughtechnology& ,methodologies,bestpracticesandmore,Yole sFellowAnalystensuresthetrainingofYole sTechnology& ,EricMounierhasspokeninnumerousinternati onalconferences,presentinghisvisionofthe semiconductorindustryandlatesttechnicali nnovations.

6 Hehasalsoauthoredorco-authoredmorethan10 0papersas wellas morethan120 Yole stechnology& ,EricheldR&DandMarketingpositionsat CEALeti(France).EricMounierhasa SemiconductorEngineeringanda degreein OptoelectronicsfromtheNationalPolytechni cInstituteof Grenoble(France).Contact: Photonics 2021 | Sample | | 2021 Biographies & contact informationABOUT THE AUTHORS1111 Acacia, Accton, Aeva, AIO Core, Alibaba Cloud, Alpine Optoelectronics, Amazon, amf, ams, Analog Photonics , Anello, AO I , Aryballe, at&t, Axalume, AyarLabs, Bra-KetScience, Broadcom, Broadex, Caliopa, CeliO, Ciena, C i s c o, Cloudlight, Elenion, Ericsson, Facebook, Fiberhome, ficonTEC, Finisar, Fujitsu, Fujitsu Optical Components, Genalyte, GlobalFoundries, Google, Hengtong, HPE, Huawei, Hyperlight, Hyperlight, IBM, II-V I , Infinera, InPhi, Intel, iPronics, IQE, Iris Light Technologies , Juniper, Kaiam, KVH, Leoni, Lightelligence, Lightmatter, Lightwave Logic, Lumentum, Luminous, Lumiphase, Luxtera, MACOM, Microsoft, Molex, NEC, NeoPhotonics, Nokia, NTT, NTT Electronics, NXP, Orange Labs, POET, Pointcloud, Polariton Technologies, PsiQ, QuiX, Ranovus, Rockley Photonics , ScintilPhotonics, Senko, Sentea, ShinEtsu, Sicoya, SiLC.

7 Silex, Silterra, Skorpios, Skywater, SOITEC, Sumitomo Electric, TE Connectivity, Teramount, Teraxion, TowerJazz, TSMC, Tundra Systems Global, VTT, Xanadu and moreCOMPANIES CITED IN THIS REPORTS ilicon Photonics 2021 | Sample | | 20211212 The growth of the Silicon Photonics Technology for pluggable optics. The use of Silicon Photonics for sensing applications. The coming of co-packaged optics. The willingness of using Silicon Photonics in consumer applications. The readiness of photonic WE GOT RIGHT, WHAT WE GOT WRONGS ilicon Photonics 2021 | Sample | | 202113 Silicon Photonics DIE FORECAST, BY APPLICATIONS2020 - 2026 forecastThe Silicon Photonics die Market could shift from optical com-municationto consumer application in the next five transceiversLong haul transceiversImmunoassay$84M$454MC AGR21 -2626%$ AGR21-2612%2020$87M$ $ AGR21-2668%$ AGR23-26190%5G transceivers$ AGR21-2643%Fiber-optic gyroscopeCo-packaged engines$ $115MC AGR24-26168%Consumer health$ AGR21-2674%$ AGR24-26190%$34MC AGR25-26321%Automotive LiDARP hotonic computingOptical interconnects$ $ $ $478MC AGR24 -2681% Silicon Photonics 2021 | Sample | | 2021141402004006008001 0001 20020192020202120222023202420252026 CAGRC onsumer health0000014530747881%Photonic computing000001637115168%Automotive LiDAR000000,1090,3530,917190%Fibre-optic gyroscope00,0020,0030,0050,0110,0230,034 0,05274%Immu n oassay00,0350,0600,1030.

8 1760,2970,4930,79668%5G transceivers00,61,12,23,45,47,86,543%Opt ical interconnects00000,1260,5551,33,1190%Lon g haul transceivers1,31,51,61,82,02,22,52,912%C o-packages engines0000008,234,4321%Datacenter transceivers588414420727734440645426%Tot al59871472122835147711 09549% Market in $MSilicon photonic die marketSilicon Photonics 2021 | Sample | | 2021 Silicon Photonics DIE MARKETHere we show the forecasts for the Silicon Photonics dies per application. To calculate the Silicon photonic die Market , we use the number of die per application and the average selling price (ASP) of the dies for each application. The ASP for each die depends on the die complexity and the surface area of the die. The Market for Silicon photonic dies for datacenter transceivers will grow in similar fashion to that of the Silicon photonic transceiver shipments. Application in consumer health could have an important impact on the Silicon photonic die Market with consumer health taking half of the total Silicon photonic die Market .

9 It relates to the potential high Market for consumer with smart watches with advanced consumer health function reaching shipment of million units in 2025. This is not taking into account potential other applications in smartphones or dedicated end-systems for consumer health. Photonic computing is also expecting to significant Market shares in 2026. This is because of the large size of the Silicon photonic die needed for this application and therefore the high unit price. 02004006008001 0001 20020192020202120222023202420252026 CAGRC onsumer health0000014530747881%Photonic computing000001637115168%Automotive LiDAR000000,1090,3530,917190%Fibre-optic gyroscope00,0020,0030,0050,0110,0230,034 0,05274%Immu n oassay00,0350,0600,1030,1760,2970,4930,7 9668%5G transceivers00,61,12,23,45,47,86,543%Opt ical interconnects00000,1260,5551,33,1190%Lon g haul transceivers1,31,51,61,82,02,22,52,912%C o-packages engines0000008,234,4321%Datacenter transceivers588414420727734440645426%Tot al59871472122835147711 09549% Market in $MSilicon photonic die Market *The CAGR (Compound Annual Growth Rate) is calculated between 2026 and 2021.

10 When there is no data in 2021, it is calculated between 2026 and the first year with available data. 15 LONG-TERM CONSUMER HEALTH FORECASTSS ilicon Photonics for high-end smart watchesThere is room in the high-end smart watch Market to integrate healthcare functions. Silicon Photonics 2021 | Sample | | 2021 Using Silicon Photonics for consumer health targeting smart watches and potentially other end-systems such as smartphones and consumer devices dedicated to healthcare could be a game changer for Silicon Photonics because the volumes in the consumer Market are much larger than that in the datacom Market . Here, we examine the potential impact of the consumer health adoption of Silicon Photonics in the long-term. We first examine a hypothetic line up of smart watches from Apple. In September 2020, Apple introduced the Apple Watch Series 6 with blood oxygen and electrocardiogram (ECG) measurements for fitness purpose. The price of the watch starts from $399 while the price of the watch with no fitness function was reduced to $279.