An institute linked to Shanghai Jiao Tong University has begun producing photonic chips at a facility called Chip Hub for Integrated Photonics Xplore (CHIPX) in Wuxi, Jiangsu province.

CHIPX makes 6-inch thin-film lithium niobate photonic wafers, with an annual output of 12,000 wafers.

Photonic chips use light to process data and enables applications in data communications, autonomous vehicles, biomedical tech, and quantum computing.

Established in 2021, CHIPX began manufacturing operations in September 2024.

This platform is expected to collaborate with industry partners to promote the adoption of photonic chip technology.

It will focus on areas such as 5G, 6G, AI data centers, and quantum networks.

As the US tightens chip export controls, China is investing in photonics and quantum tech to reduce dependence on foreign suppliers.

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🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ China’s strategic pivot to alternative semiconductor paths

Shanghai Jiao Tong University’s photonic chip production represents China’s calculated diversification in semiconductor technology amid US restrictions.

While China’s photonic chip market reached approximately 15.2 billion yuan ($2.1 billion) in 2023, the localization rate for advanced photonic chip supply chains remained below 5% according to AskCI consultancy data 1.

This investment in photonics follows China’s previous semiconductor push that increased memory chip production from virtually zero to 5% of global output between 2019-2020 2.

The CHIPX facility’s 12,000 wafer annual capacity (yielding approximately 4.2 million chips) demonstrates significant scale in a critical technology area outside traditional silicon semiconductors.

This alternative path allows China to bypass certain US export restrictions while developing capabilities in quantum computing and next-generation communications that align with its strategic technology priorities.

2️⃣ US export controls create unintended innovation acceleration

The photonic chip breakthrough exemplifies how US restrictions have paradoxically stimulated domestic Chinese semiconductor innovation rather than merely containing it.

The Federal Reserve Bank of New York has documented significant revenue declines for US semiconductor firms due to China export restrictions, while simultaneously noting accelerated Chinese domestic investment in alternative technologies 3.

US controls specifically targeting advanced silicon chips have redirected Chinese resources toward quantum computing and photonics, technologies where China might leapfrog traditional development paths.

The CHIPX platform’s focus on sharing design and processing expertise with industry partners reflects China’s ecosystem approach to technology development, creating broader industrial capabilities rather than isolated advances.

3️⃣ The race for quantum supremacy accelerates amid geopolitical tensions

The production of lithium niobate photonic chips specifically positions China to advance quantum computing capabilities despite international restrictions.

Photonic chips are particularly crucial for quantum information processing, where China has made significant investments as part of its broader $19.3 billion semiconductor fund aimed at reducing technological dependencies 4.

This development emerges as quantum computing becomes a central battlefield in US-China technology competition, with both nations viewing quantum supremacy as essential for future economic and security advantages.

China’s ministry recognition of CHIPX as a “key national pilot platform” signals the strategic importance placed on quantum-related technologies within the “Made in China 2025” framework targeting 70% domestic semiconductor production by 2025 5.

The platform’s integration of “research and development, process validation and scalable manufacturing” demonstrates China’s comprehensive approach to building complete technology ecosystems rather than just manufacturing capacity.

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