Shares of semiconductor designing and manufacturing company STMicroelectronics ( STM ) , are trading higher on Thursday.

The company is preparing to launch its next-generation technologies aimed at improving optical connections within data centers and AI clusters.

As the demand for AI computing grows, issues related to performance and energy efficiency across memory, computing, power supply, and interconnections have surfaced.

ST’s silicon photonics and BiCMOS technologies are designed to overcome these challenges, with manufacturing expected to begin in the latter half of 2025.

“Today’s announcement represents the first step for our PIC product-family and, thanks to close collaboration with key partners across the entire value chain, our ambition is to become a key supplier of silicon photonics and BiCMOS wafers for the datacenter and AI cluster market, be it pluggable optics today or optical I/O tomorrow,” said Remi El-Ouazzane, President, Microcontrollers, Digital ICs and RF products Group at STMicroelectronics ( STM ).

Also Read: Nvidia Stock Poised To Rise Amid Strong AI Investments By Hyperscalers, Says Top Investor

The company seeks to address the increasing demand for rapid data transfer in hyperscale settings by offering optical modules that enable speeds of 800Gb/s and 1.6Tb/s.

STMicroelectronics’ unique silicon photonics (SiPho) technology enables the integration of several complex components into one chip.

“AWS is pleased to collaborate with STMicroelectronics ( STM ) to develop a new silicon photonics technology (SiPho), PIC100, that will enable interconnection between any workload including Artificial Intelligence (AI). AWS is working with STMicroelectronics ( STM ) based on their demonstrated capability to make PIC100 a leading SiPho technology for the optical and AI market,” said Vice President and Distinguished Engineer at Amazon Web Services, Nafea Bshara.

The SiPho and BiCMOS technologies are based on a 300mm silicon platform, offering a distinct solution for the optical industry. These technologies will be produced at ST’s 300mm facility in Crolles, France.

Price Action: STM shares are trading higher by 4.44% at $27.65 at the last check Thursday.

Read Next:

Serve Robotics Rolls Into Miami’s Food Scene