Lasers on the front line of AI infrastructure expansion amid manufacturing challenges

The rapid growth of artificial intelligence is changing the game not just in terms of how many more chips are needed and how many new data centers are popping up, but also in the kinds of industrial tools required to produce the hardware that makes all this possible. According to Goldman Sachs, they expect annual investment in AI infrastructure to jump from around $765 billion in 2026 to about $1.6 trillion by 2031. But, and this is important, there's also a warning that shortages in power, labor, and equipment could slow down how fast we go from just investing money into actually running those facilities.

This scenario creates an interesting opportunity, particularly for companies that manufacture highly specialized manufacturing tools. Take LITILIT, for example, a company making femtosecond lasers. The next wave of AI hardware actually needs highly precise processing techniques that can avoid heat damage to fragile materials like semiconductor packages, glass substrates, optical interconnects, and advanced printed circuit boards.

And it’s not just about the demand. The importance of having that kind of precise laser capability is growing, especially as data centers are desperately trying to speed up how fast information travels. TrendForce has estimated that the market for co-packaged and near-packaged optics, which use light-based connections to move data faster, will grow from about $100 million in 2025 to over $39 billion by 2030. In such a climate, femtosecond lasers are increasingly being used to make glass interposers, tiny chips that have microscopic holes drilled into them, which can then be filled with copper to create super tiny vertical links between chiplets and other parts.

Unlike traditional lasers or mechanical drilling tools, femtosecond systems deliver pulses so brief that the surrounding material does not have time to heat up. This makes them useful whenever materials need to be cut, trimmed, or repaired without causing thermal stress.

LITILIT admits that demand isn’t their only challenge. Mass-producing these lasers on an industrial scale is tricky because most systems are based on scientific equipment, and they still need highly trained specialists to operate them. To bridge that gap, the company says they've come up with a manufacturing approach based on patents developed by their founders, in collaboration with the Center for Physical Sciences and Technology in Vilnius. They started building a laser manufacturing plant in Vilnius in June 2026, and are planning to expand this model with partners overseas.

Disclaimer: This article may have been created with AI assistance and reviewed by our editorial team. It is provided for general informational purposes only. Readers should verify information independently before relying on this content.

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Lasers on the front line of AI infrastructure expansion amid manufacturing challenges

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