KISTA: Sivers Semiconductors AB said Thursday it will invest $30 million to expand its photonics manufacturing facility in Glasgow, Scotland, as the company prepares for surging demand from artificial intelligence data centers and optical networking.

The expansion is expected to boost production capacity to more than 100 million continuous-wave distributed feedback lasers annually, the company said. The facility, which manufactures indium phosphide-based lasers, is slated to become operational in the fourth quarter of 2027.

The investment marks a shift in Sivers’ manufacturing strategy from a Fab-Lite model to what it describes as a Hybrid Manufacturing approach, combining expanded in-house capabilities with external foundry, packaging and manufacturing partners in Asia.

“The scale of today’s AI infrastructure build-out is creating unprecedented demand across the optical supply chain,” said Vickram Vathulya, president and CEO of Sivers Semiconductors. “Our customers need significantly more laser production capacity and, just as importantly, the confidence that supply will be there when their programs ramp.”

Hyperscale operators building larger AI clusters and moving to higher-speed networking architectures are accelerating demand for advanced optical interconnect technologies, the company said. Sivers believes its indium phosphide-based lasers and semiconductor optical amplifiers will be critical to enabling high-performance, energy-efficient optical connectivity.

“This approach gives Sivers the ability to support high-volume production as AI infrastructure deployments accelerate,” said Neeraj Chopra, chief operating officer.

The expansion program is set to begin in the second half of 2026.

Sivers Semiconductors, headquartered in Kista, Sweden, trades on the Stockholm Stock Exchange under the symbol SIVE. The company develops laser and radio frequency beamformer technologies for AI data centers, satellite communications, defense and telecommunications markets.