AMSTERDAM – STMicroelectronics announced on Thursday the launch of a cutting-edge computer chip designed for the rapidly expanding AI data center equipment market. This new chip has been developed in collaboration with Amazon’s web services branch (AWS).
With major U.S. software companies gearing up to invest $500 billion in AI infrastructure through the Stargate initiative, the demand is not only for specialized computing chips from Nvidia but also for chips utilized in memory, power, and communication applications.
ST has set its sights on the communications sector with the introduction of a photonics chip – a chip that utilizes light instead of electricity. This innovative chip aims to enhance speed and reduce power consumption in converters, known as transceivers, which are crucial components in advanced AI data centers.
Vincent Fraisse, the general manager of ST’s radio and communications chip division, unveiled the collaboration agreement with AWS during a presentation for journalists. He highlighted AWS’s active involvement in the chip’s development and its commitment to deploying this technology in their infrastructure once it enters production later this year.
Moreover, ST has an ongoing partnership with a leading provider of optical solutions, a key player in pluggable optical transceivers. This collaboration aims to incorporate the photonics chip into their upcoming generation of transceivers. Although the company’s name was not disclosed, top transceiver manufacturers such as Coherent and Cisco in the U.S., and Innolight and Accelink in China are anticipated to benefit from this technological advancement.
According to research conducted by LightCounting, the market size for such devices was $7 billion in 2024 and is projected to skyrocket to $24 billion by 2030.
ST plans to commence mass production of these chips at its facility in Crolles, France.
(Reporting by Toby Sterling; Editing by Kirsten Donovan)
