STMicro weighs Crolles fab expansion as AI optics demand rises, CEO says

STMicroelectronics will likely decide on a further expansion of its Crolles chipmaking site in France by the end of ‌2026, as ⁠demand for ⁠silicon photonics used in AI data centres accelerates, its chief executive said on Tuesday.

CEO Jean-Marc Chery, speaking at a conference in Geneva, Switzerland hosted by BNP Paribas, said the expected shift towards so-called near-package optics, where optical engines sit closer to processors, would require a capacity decision.