Earlier quoted context omitted.
And are they going to work out any better than Linear Drive Optics, the more obvious alternative?
LDO is just integration. It certainly has value: integration almost always does. So it's clearly the obvious optimization of conventional serial optical communication. This new TSMC work with parallel incoherent optics is altogether distinct. No DSP. No SerDes. Apples and oranges.
And I'm not sure how much of this is actually TSMC's work, the title is misleading.
Edit: actually, they are working on the detector side.