China Photonic Integrated Circuit Market

China Photonic Integrated Circuit Market Overview:

The China photonic integrated circuit market size reached USD 2.25 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 9.96 Million by 2033, exhibiting a growth rate (CAGR) of 16.04% during 2025-2033. Growing demand for high-speed data transmission, rising 5G deployment, advances in cloud computing, government support for photonics R&D, miniaturization trends in electronics, increased adoption in AI and data centers, and the push for energy-efficient, cost-effective optical communication solutions are some of the factors contributing to the China photonic integrated circuit market share.

China Photonic Integrated Circuit Market Trends:

Advancement in Domestic Photonic Chip Production

China has established its first facility dedicated to producing thin-film lithium niobate photonic chips, aimed at powering AI, quantum computing, and 6G technologies. Developed at a leading university’s innovation hub, the line delivers performance that exceeds prevailing global capabilities, offering faster speeds and minimal signal loss. This achievement enhances the ability to design and manufacture next-generation photonic integrated circuits within the country, reducing dependence on foreign suppliers. The move signals a stronger push toward self-sufficiency in high-performance chipmaking and paves the way for broader adoption of photonics in advanced communications and computing. It also sets the stage for faster product cycles and greater competitiveness in emerging technology markets. These factors are intensifying the China photonic integrated circuit market growth. For example, in June 2025, China opened its first production line for thin-film lithium niobate photonic chips at Shanghai Jiao Tong University’s CHIPX, producing 6-inch wafers for AI, quantum computing, and 6G applications. The pilot line surpasses global benchmarks with modulation bandwidth above 110 GHz and ultra-low signal loss, enabling faster chip iteration. This move marks a significant step in China’s bid to scale domestic photonic integrated circuit manufacturing.

Shift toward Diversified Photonic Assembly Locations

In the photonics industry, companies are increasingly moving to secure full ownership of joint ventures and associated production equipment to enhance control over manufacturing operations. This strategy enables greater flexibility in deciding where assembly takes place, reducing dependence on a single geography. By diversifying production sites, manufacturers can better navigate shifting trade conditions, regulatory changes, and geopolitical risks. Control over core assets also allows faster decision-making, smoother technology transfers, and more agile responses to market demands. This approach is often part of a broader “China Plus One” manufacturing model, which retains a presence in China while building capacity in alternative locations. Such moves strengthen supply chain resilience, ensure continuity in customer deliveries, and open opportunities to serve global markets with fewer disruptions. As photonic integrated circuits become more critical to AI, quantum computing, and advanced communications, operational flexibility is becoming a key driver of competitive advantage. For example, in November 2024, POET Technologies acquired full ownership of Super Photonics Xiamen from Chinese partner SAIC, gaining all leased production equipment. The move supports POET’s “China Plus One” strategy, allowing it to shift wafer-scale assembly operations outside China.

China Photonic Integrated Circuit Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on component, raw material, integration, and application.

Component Insights:

• Lasers
• MUX/DEMUX
• Optical Amplifiers
• Modulators
• Attenuators
• Detectors

The report has provided a detailed breakup and analysis of the market based on the component. This includes lasers, MUX/DEMUX, optical amplifiers, modulators, attenuators, and detectors.

Raw Material Insights:

• Indium Phosphide (InP)
• Gallium Arsenide (GaAs)
• Lithium Niobate (LiNbO3)
• Silicon
• Silica-on-Silicon

The report has provided a detailed breakup and analysis of the market based on the raw material. This includes indium phosphide (InP), gallium arsenide (GaAs), lithium niobate (LiNbO3), silicon, and silica-on-silicon.

Integration Insights:

• Monolithic Integration
• Hybrid Integration
• Module Integration

The report has provided a detailed breakup and analysis of the market based on the integration. This includes monolithic integration, hybrid integration, and module integration.

Application Insights:

• Optical Fiber Communication
• Optical Fiber Sensor
• Biomedical
• Quantum Computing

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes optical fiber communication, optical fiber sensor, biomedical, and quantum computing.

Regional Insights:

• North China
• East China
• South Central China
• Southwest China
• Northwest China
• Northeast China

The report has also provided a comprehensive analysis of all the major regional markets, which include North China, East China, South Central China, Southwest China, Northwest China, and Northeast China.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

China Photonic Integrated Circuit Market News:

• In June 2025, Chinese researchers at Fudan University created a silicon photonic high-order mode multiplexer chip that uses light for data transmission, achieving speeds of 38 Tbps, enough to transfer 4.75 Trillion LLM parameters per second. The innovation, reported by state media, marks early progress in China’s push toward light-based chips, with officials projecting major breakthroughs in the photonic integrated circuit sector within three years.

China Photonic Integrated Circuit Market Report Coverage:

Key Questions Answered in This Report:

• How has the China photonic integrated circuit market performed so far and how will it perform in the coming years?
• What is the breakup of the China photonic integrated circuit market on the basis of component?
• What is the breakup of the China photonic integrated circuit market on the basis of raw material?
• What is the breakup of the China photonic integrated circuit market on the basis of integration?
• What is the breakup of the China photonic integrated circuit market on the basis of application?
• What is the breakup of the China photonic integrated circuit market on the basis of region?
• What are the various stages in the value chain of the China photonic integrated circuit market? 
• What are the key driving factors and challenges in the China photonic integrated circuit market?
• What is the structure of the China photonic integrated circuit market and who are the key players?
• What is the degree of competition in the China photonic integrated circuit market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the China photonic integrated circuit market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the China photonic integrated circuit market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the China photonic integrated circuit industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.