STMicroelectronics (ST), a major manufacturer of electronics and semiconductors, announced on Thursday the launch of a new computer chip designed for the rapidly expanding AI data center market. This development is the result of a collaborative agreement with Amazon Web Services (AWS).
The logo of STMicroelectronics is seen outside a company building.
With leading U.S. software firms planning substantial investments in AI infrastructure, specifically as part of the Stargate venture, demand is increasing not only for specialized computing chips like those made by Nvidia, but also for chips used in memory, power, and communications applications. ST is focusing on the communications sector with a photonics chip, which uses light instead of electricity, to enhance speed and reduce power consumption in converters called transceivers. Advanced AI data centers require hundreds of thousands of these transceivers.
According to Vincent Fraisse, general manager of ST’s radio and communications chip division, “We have signed a collaboration agreement with AWS, which has been intimately involved in the development…and which will deploy this technology in their infrastructure as it reaches production stage later this year.” Fraisse also mentioned an ongoing collaboration with a leading provider of optical solutions, the market leader in pluggable optical transceivers, for their utilization of the chip in their next-generation transceivers, although the company’s name was not disclosed. The new chip is slated for mass production at ST’s factory in Crolles, France.
Market research firm LightCounting estimates that the market for such devices was valued at $7 billion in 2024, and is projected to reach $24 billion by 2030.
