STMicroelectronics is preparing to make a pivotal call on whether to expand its flagship Crolles fabrication facility in France, with a decision expected by the end of 2026. The catalyst is straightforward: demand for silicon photonics chips, the kind that shuttle data around AI data centers at the speed of light, is growing faster than the company’s current capacity can handle.
CEO Jean-Marc Chery laid out the timeline on June 2, noting that existing infrastructure at Crolles can sustain silicon photonics operations through 2027 and into early 2028.
From $500 million to $1 billion, in one guidance update
STMicroelectronics upgraded its 2026 data-center revenue target to approximately $1 billion, up from a previous estimate of over $500 million. The company is also targeting roughly 30% market share in key silicon photonics segments.
STMicroelectronics kicked off high-volume production of its PIC100 silicon photonics platform in March 2026 at Crolles. The platform supports data rates of 800 Gb/s and 1.6 Tb/s per optical module, and the company has plans to quadruple PIC100 production capacity by 2027.
