The CORNERSTONE Photonics Innovation Centre at the University of Southampton has published research on the UK silicon photonics sector, arguing that stronger domestic scale-up infrastructure could boost growth and support sovereign technology development.

A survey of 100 UK-based decision-makers found broad support for expanding domestic manufacturing and prototyping capacity in silicon photonics, which integrates optical components onto silicon chips. It also identified trade barriers and reliance on overseas manufacturing as constraints on growth.

The findings show that 76% of respondents believe better UK scale-up infrastructure would accelerate company growth. Nearly a third, 32%, said high tariff costs were creating barriers to developing silicon photonics prototypes.

Economic analysis by CORNERSTONE researchers suggests a domestic pilot line could add GBP £2.9 billion to the UK economy by 2040 and create about 2,850 jobs. The analysis also links a pilot line to stronger domestic positions in artificial intelligence and quantum technologies.

Domestic demand

The study portrays a sector with strong UK ambition but uneven industrial support. Some 77% of respondents said they are developing or deploying silicon photonics in the UK, or plan to do so, while 64% said they already manufacture abroad or expect to in future.

That split highlights a gap between research and commercial production. More UK fabrication and process support would help retain a larger share of value that currently flows overseas, the study argues.

Two-thirds of respondents, 67%, said they were confident in the UK’s ability to benefit from the silicon photonics opportunity. CORNERSTONE set that against wider expectations for growth in photonics, with the broader UK sector forecast to generate annual output of more than GBP £20 billion.

Silicon photonics has attracted growing attention for its potential use in data centres, optical networks, artificial intelligence systems and quantum technologies. It has also become part of a wider debate over how the UK can build strategic capacity in advanced semiconductor-related industries.

Case for pilot line

A central finding was industry support for a UK pilot line, which would give companies access to mid-stage production support between laboratory work and full commercial manufacturing. In the survey, 74% said such a facility would accelerate innovation and 79% said it would significantly strengthen the UK’s sovereign technology position.

Respondents said a pilot line would also improve quality, speed time to market and reduce reliance on overseas foundries. The responses point to a practical concern among companies that can design and test products but have limited local options when they need to scale production.

The findings align with recent calls for a national photonics roadmap and investment in silicon photonics infrastructure. They also come as international interest in the field rises, including major private investment in the US.

Professor Graham Reed, Director of CORNERSTONE, said: “Global investment in SiPh is accelerating – we’ve seen the scale of ambition from the US, with major federal and private commitments including NVIDIA’s flagship $6bn investments. The UK has the talent, the expertise, and the market opportunity to make substantial gains in the sector, and CORNERSTONE’s market research demonstrates significant demand for domestic pilot line capabilities.”

The research suggests UK companies want to keep more of their development and production activity at home if the industrial base can support it. For policymakers, that frames silicon photonics as both an economic opportunity and a resilience issue.

CORNERSTONE is an open-access silicon photonics prototyping foundry hosted at the University of Southampton, with partners including the University of Glasgow and the Science and Technology Facilities Council. Since 2014, it has fabricated more than 900 photonic integrated circuit designs for more than 125 organisations across 26 countries.

Callum Littlejohns, Deputy Director at CORNERSTONE, said: “2024 projections from Future Markets puts the global SiPh market at least $46.5B by 2035 as demand from AI infrastructure, data centres, and quantum technologies accelerate. Commercialising products is the only way to get a slice of the pie. The case for support from the UK government is straightforward. A domestic pilot line is the logical next step to help companies scale their silicon photonics chips, translating directly into jobs, export revenue, and long-term technological sovereign capability.”

SOFIAH NICHOLE SALIVIO

News Editor

Iceotope has raised USD $26 million in a Series B funding round led by Two Seas Capital and Barclays Climate Ventures.

Existing investors Edinv, ABC Impact, Northern Gritstone and British Business Bank also participated. The company plans to use the funds for product and engineering development, patent expansion, and work with partners to bring systems based on its liquid cooling technology to market.

The fundraising comes as data centre operators and other computing users face mounting heat-management challenges from AI hardware. Iceotope argues that newer GPU and accelerator platforms are pushing rack power densities towards 1MW and beyond, levels that conventional air cooling and direct-to-chip liquid cooling cannot adequately support.

Iceotope develops precision liquid cooling systems for AI infrastructure, high-performance computing, and deployments outside traditional data centres. It says the same thermal challenges are spreading as AI workloads move into broader enterprise and edge environments.

Forecasts cited by the company point to rapid growth in liquid-cooled AI systems. SemiAnalysis estimates the installed base of liquid-cooled AI accelerators will rise from about 3GW to 40GW within two years, driven by hyperscale and colocation demand for AI workloads.

That expected growth has made cooling a bigger investment theme in AI infrastructure. Iceotope says the global data centre cooling market is projected to reach USD $40 billion to USD $45 billion by 2030, with liquid cooling accounting for USD $15 billion to USD $20 billion.

The company recently surpassed 200 granted and pending patents, expanding its intellectual property portfolio as competition intensifies in cooling systems for dense computing environments. The latest financing is expected to support further work in that area.

Iceotope says its technology can reduce energy use by up to 40% and water use by up to 96% compared with traditional cooling methods, while enabling higher rack density. Those gains could appeal to operators facing high electricity costs, water constraints and pressure to cut emissions.

Chief Executive Officer and Chief Financial Officer Simon Jesenko described the round as a sign of investor support for the company’s timing and product focus.

“Securing such high-caliber investors validates both our technology and our market timing. We’ve spent years developing a robust, differentiated IP portfolio and products purpose-built for AI infrastructure, and we’re ready to scale at precisely the moment the industry demands more advanced, sustainable cooling technology. The opportunity ahead – both directly with customers and through our partner ecosystem – is significant,” Jesenko said.

Barclays Climate Ventures said the investment reflects the limits of existing cooling systems as AI adoption rises.

“With AI adoption rapidly increasing globally, Iceotope’s liquid-cooling technology offers a timely and innovative solution to the mounting limitations of traditional cooling systems. Its approach not only meets the escalating demands of AI and high-performance computing but also materially advances datacenter sustainability. Aligned with Barclays Climate Ventures’ mandate to invest in commercially scalable climate technologies, we believe Iceotope is strongly positioned in a growing market and capable of significantly improving energy efficiency in a critical sector,” said Steven Poulter, Head of Barclays Climate Ventures.

Stagecoach has announced one new express route, and changes to three buses ahead of the summer.

Starting from May 31, residents can expect changes to service 10, 12, and 13 in the city, as well as a new express route.

The bus company has introduced service 9, a new clockwise express route.

The bus will be running every 30 minutes serving East Oxford.

Starting from Speedwell Street, it will provide connections to St Clement’s Street, Headington Road, the John Radcliffe Hospital, Headington, The Slade, Hollow Way and Cowley Road before terminating back at Speedwell Street.

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Meanwhile service 10 will become an anti‑clockwise express route, running every 30 minutes.

Starting from Speedwell Street, it will provide connections to Cowley Road, Hollow Way, the Slade, Headington, the John Radcliffe Hospital, Headington Road, and St Clement’s Street before terminating back at Speedwell Street.

Service 12 will run every 30 minutes from Speedwell Street to Horspath Road, via Cowley Road, Templars Square and Hollow Way.

Service 13 will run every 30 minutes from Speedwell Street to Barns Road, via St Clement’s Street, Headington Road, the John Radcliffe Hospital and Headington, Wood Farm, Hollow Way, and Templars Square, terminating at Kersington Crescent.

Some morning and evening services will also serve Blackbird Leys, for customers commuting to the John Radcliffe Hospital.