Chip on Submount Market to Double by 2032, Driven by Medical and Defense Demand

Chip on Submount (COS) Market size was valued at US$ 567.3 million in 2024 and is projected to reach US$ 1.14 billion by 2032, at a CAGR of 10.6% during the forecast period 2025-2032

The global Chip on Submount (COS) Market size was valued at US$ 567.3 million in 2024 and is projected to reach US$ 1.14 billion by 2032, at a CAGR of 10.6% during the forecast period 2025-2032. The market expansion is primarily driven by increasing adoption in medical, defense, and industrial laser applications.

Chip on Submount (CoS) refers to an advanced packaging technology where semiconductor laser chips are mounted onto thermally conductive submounts (typically aluminum nitride or silicon carbide) for improved heat dissipation and electrical performance. This architecture is particularly crucial for high-power diode laser modules used in applications requiring precise thermal management and compact form factors.

The market growth is fueled by multiple factors including rising demand for miniaturized laser systems, technological advancements in photonics packaging, and expanding applications in medical therapies like dermatology and ophthalmology. While the below 1000nm segment currently dominates for industrial applications, the above 1000nm segment is gaining traction in medical and defense sectors due to superior penetration capabilities. Recent developments include Sheaumann Laser’s 2023 launch of high-efficiency CoS modules for fiber laser pumping, demonstrating the ongoing innovation in this space.

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MARKET DRIVERS

The global Chip on Submount (CoS) market is experiencing robust growth driven by increasing adoption in photonics and optoelectronics applications. CoS technology plays a pivotal role in diode laser packaging, providing superior thermal management and electrical connectivity. The photonics industry’s rapid expansion, particularly in data communications and sensing applications, has intensified demand for reliable high-power laser modules. With data center expansion projects worldwide and growing 5G network deployment, the need for efficient optical components continues to rise. Industry analysis indicates the global photonics market is projected to maintain a consistent growth trajectory, directly benefiting the CoS segment.

Medical applications represent one of the fastest-growing segments for CoS technology. The precision and reliability offered by CoS-packaged laser diodes are critical for minimally invasive surgical procedures, dermatological treatments, and diagnostic equipment. With the global medical laser market expanding significantly, driven by increasing healthcare expenditure and technological advancements, CoS solutions are becoming essential components. Dental procedures alone account for a substantial portion of this demand, with laser-based treatments growing by approximately 15% annually. Furthermore, regulatory approvals for new laser-based medical devices continue to create additional growth opportunities for CoS manufacturers.

Recent Development

1 US Tariffs Prompt Supply‑Chain Restructuring

New U.S. import tariffs on semiconductor components in 2025 have significantly impacted submount segments, including COS solutions. Import costs reportedly rose by up to 25%, prompting manufacturers to invest in localized submount production pilot lines, diversify sources across Europe and Asia, and accelerate development of domestic supply in North America to mitigate geopolitical exposure 

2 Advanced Packaging Faces Capacity Constraints

COS-style advanced packaging remains a critical enabler of high-performance chip assembly, particularly for AI, telecom, and data‑center use cases. While Reuters has not called out COS by name, broader reporting emphasizes that advanced packaging capacity—such as CoWoS and submount-integrated builds—is under strain, with companies like TSMC doubling CoWoS capacity by end of next year to relieve bottlenecks 

 3 Supply Chain Rebalancing Trend

Global semiconductor players are realigning COS and submount sourcing strategies due to trade tensions—initiating joint ventures and localized production hubs to avoid tariff exposure, reduce logistics complexity, and maintain lead times 

List of Key Chip on Submount (CoS) Companies Profiled

• Sheaumann Laser, Inc. (U.S.)
• QPC Lasers (U.S.)
• Lumentum (U.S.)
• Alnair Photonics Sdn. Bhd (Malaysia)
• Thorlabs, Inc. (U.S.)
• Union Optronics Corp. (Taiwan)
• 3SP Technologies (France)
• Shenzhen Raybow Optoelectronics (China)
• Turning Point Lasers (TPL) (U.S.)

Segment Analysis:

By Type

Above 1000nm Laser Chip on Submount (CoS) Segment Leads Due to Widespread Use in Industrial and Medical Applications

The market is segmented based on type into:

• Below 1000nm Laser Chip on Submount (CoS)
• Above 1000nm Laser Chip on Submount (CoS)

By Application

Medical Applications Dominate with Increasing Adoption in Surgical Procedures and Therapeutic Devices

The market is segmented based on application into:

• Raman Spectroscopy
• Laser Therapy
• Laser Pumping
• Medical
• Defense

By Technology

High-Power Laser Segment Shows Strong Growth in Industrial and Defense Applications

The market is segmented based on technology into:

• High-Power Lasers
• Low-Power Lasers
• Mid-Power Lasers

By End-Use Industry

Healthcare Sector Maintains Strong Demand for Chip on Submount Solutions

The market is segmented based on end-use industry into:

• Healthcare
• Industrial Manufacturing
• Defense & Aerospace
• Research & Development
• Telecommunications

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