TSMC is expanding its 3DFabric platform and COUPE silicon-photonics technology to address the computing, bandwidth and thermal constraints created by rapidly scaling AI workloads. Silicon photonics is expected to exceed 50% of the optical-transceiver market by 2027, while vendors are set to enter co-packaged optics (CPO) volume production in the second half of 2026. TSMC said its roadmap combines advanced silicon technology, SoIC 3D stacking, HBM integration, CoWoS advanced packaging and optical interconnects. The company projects that a single CoWoS package could integrate 24 HBM stacks by 2029, with AI-transistor capacity rising more than 48-fold and HBM bandwidth 34-fold from 2024 to 2029. Optical-transceiver sales rose 25% in 2025 and are projected to grow another 50% in 2026, but deployment remains dependent on lasers, fibers, connectors, testing, capacity, yields and broader supply-chain coordination.