The EU Chips Act 2.0 proposal, released in early June 2026, has officially added photonics as a new structural pillar of the “Chips for Europe Initiative.” The revelation came from pseudonymous AI supply chain analyst Serenity (@aleabitoreddit) on June 3, who shared excerpts from the policy document. He argues this shift elevates photonics from a mere investment thesis to a national-level strategic priority for the EU, unlocking dedicated funding and regulatory support.
Photonics Becomes EU Industrial Policy Focus
According to the analyst, the initiative will ramp up support for photonic integrated circuits (PICs) and related technologies, including expanded design capabilities, pilot production lines, and specialized design libraries and automation tools. The policy explicitly highlights co-packaged optics (CPO) for AI data centers and silicon photonics for high-bandwidth transmission, signaling a clear direction for the next wave of semiconductor investment.
Serenity named several companies that stand to benefit. In the CPO space, he flagged Sivers Semiconductors ($SIVE). For silicon-on-insulator (SOI) wafers ($SOI)—where Europe holds a competitive edge—Soitec and Siltronic are cited as key players. A screenshot from the legislative document shows that chip foundry X-FAB ($XFAB) is listed as a “First of a Kind (FOAK)” facility for advanced packaging. X-FAB’s own website indicates it leads an EU-funded consortium aimed at industrializing Europe’s silicon photonics value chain. Ephos, a specialist in glass-based photonic chips, also appears on the list.
Long-Term Bullish Thesis, But Patience Needed
Serenity characterized the policy confirmation as a major long-term positive for European photonics leaders. However, he cautioned that actual funding and contracts could take 3 to 15 months to materialize. Despite the lag, he argued that forward-looking capital markets often price in these shifts early, making the current window a critical time to establish a bullish position on EU photonics.