The $10T AI Buildout Has a Photonics Problem

Photonics represents the critical next step in scaling AI infrastructure as traditional copper interconnects reach their physical limits. Modern AI factories require massive, low-latency communication between GPUs, necessitating a transition to optical interconnects to manage surging data traffic and energy demands. Yannick De Koninck and Herwig Van Hove, founders of the photonic foundry Thema, argue that Europe is uniquely positioned to lead this industrialization. By leveraging the deep talent pool from research hubs like IMEC and repurposing existing industrial infrastructure, the region can address critical supply chain gaps in laser integration and substrate manufacturing. While the market faces constraints in tool throughput and raw material availability, the shift toward a more efficient, high-bandwidth optical network is essential for sustaining the next generation of superintelligence and overcoming the power bottlenecks currently plaguing global data centers.