Lighting up the tech world with photonics
How photonics is revolutionizing data processing in the age of AI
Photonics is emerging as the key technology to address the increasing limitations of traditional data processing. As the number of connected devices grows and global data volume is expected to reach 180 zettabytes by 2025, managing and processing this flood of data has become an urgent challenge.1
Conventional computer systems, which rely on electrons for data processing, are reaching their limits due to heat generation and physical constraints. This is where photonic data processing comes into play—a potentially faster and more energy-efficient alternative. By using light to process data, photonics promises to revolutionize the handling of large datasets and real-time processing, making it particularly indispensable for AI and data-intensive tasks.
The game changer
At its core, photonics involves generating, detecting, and manipulating light. Photonic devices leverage the quantum properties of photons, using various materials to control light flow, much like electronics control electrons.2 Understanding the key differences between integrated photonics and conventional electronics is essential before exploring its applications.
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Conventional electronics use electrons to carry information through metal wires, with components like transistors and resistors, but are limited by heat generation and electromagnetic interference. In contrast, integrated photonics utilizes photons to transmit and process data via optical waveguides, employing lasers, modulators, and photodetectors. It offers higher bandwidth, lower power consumption, and reduced heat generation.
The ability to manipulate light at the chip level enables faster data transmission and processing with minimal energy loss, making photonics a powerful solution to the limitations of traditional electronics in our data-driven world.3
Photonics is lighting up industries across the board. In telecommunications, fiber-optic cables have outpaced copper, allowing faster data transmission critical for cloud computing and high-bandwidth needs. Healthcare has seen innovations like MRI and optical coherence tomography, improving diagnostics and treatments. Lasers are now integral to precise surgeries such as tumor removal and eye procedures. Manufacturing is also embracing photonics. High-precision lasers are revolutionizing production lines, while national security benefits from photonics-based night vision, thermal imaging, and sensor systems that strengthen global defense.4
A quantum leap: photonic computing
One of the most watched advancements is silicon photonics. Capable of transmitting data at speeds of 100 Gbps, it has the potential to reshape the semiconductor industry, with major players like Intel and IBM at the forefront. Photonic computing takes this further, offering ultra-fast, energy-efficient data processing, especially in AI and machine learning. Operations like matrix multiplication, critical for AI, are executed more quickly and efficiently in the optical domain.5
A bright spot in the market
The global photonics market is experiencing rapid growth. Valued at USD 757.3 million in 2022, it is projected to grow at a compound annual rate of 7.9% through 2030. This expansion is driven by increasing applications in information and communication technology (ICT), medical devices, and renewable energy.6 North America leads in this innovation, with the tech giants HP, Intel, and IBM pushing photonics in data centers and telecommunications hardware. Meanwhile, Asia is emerging as a key player, with China's booming electronics sector and Japan's collaborative market efforts.7
Innovation in photonics isn't limited to tech giants. Startups are playing a crucial role in advancing the field. For example, companies like Lightmatter are developing photonic AI accelerators for data centers, while Ayar Labs is creating optical I/O solutions to remove bottlenecks in computing architectures. PsiQuantum is working on building a fault-tolerant quantum computer using silicon photonics.
In addition, Governments worldwide are recognizing the potential of photonics and investing in its development through various initiatives. The United States launched the National Photonics Initiative (NPI) to foster collaboration between industry, academia, and government for advancing photonics research and development. In the European Union, the Photonics21 Public Private Partnership was established to secure Europe's industrial leadership and economic growth in photonics.8 China has included photonics in its "Made in China 2025" strategic plan, aiming to become a global leader in the field. Japan implemented the Photon Frontier Network program to promote cutting-edge photonics research. These initiatives collectively demonstrate the global recognition of photonics as a critical technology for future economic and technological development.9
Overcoming the shadows
Despite its promising outlook, the photonics industry faces several challenges, including high initial costs for devices that hinder adoption, environmental concerns related to certain manufacturing chemicals, and technical difficulties in managing photons and developing efficient components like modulators and photodetectors. Environmental issues are particularly noteworthy, as the production of photonic components may involve chemicals that raise sustainability concerns. As global ESG requirements take shape, companies in the photonics industry are striving to decrease their carbon footprints and address these sustainability issues. Additionally, a shortage of skilled professionals poses a barrier to growth.
However, ongoing research and development efforts are paving the way for innovative solutions, and as technologies like quantum computing and AI evolve, photonics is expected to play a crucial role in their advancement. The global photonic integrated circuit market is projected to reach USD 30.39 billion by 2028, highlighting the industry's potential despite these obstacles.10