What it is
Photonics involves the use of light (photons) instead of electrons to transmit and process information. In the context of semiconductors, photonic components can be integrated onto chips, creating "photonic integrated circuits" (PICs). These PICs use light waveguides, modulators, and detectors to move data at extremely high speeds with less power consumption than traditional electronic circuits. This technology is especially valuable for long-distance communication and high-bandwidth data transfers.
Photonics is gaining traction in data centers and telecommunications networks, where the demand for higher bandwidth and lower power consumption is critical. Optical interconnects, which use photonic technology, are replacing electrical connections for transmitting data over short distances within servers and racks, as well as between data centers. This shift is driven by the increasing power demands of AI and high-performance computing, making photonics a key technology for future scaling and efficiency improvements in compute clusters.
Why it matters
Photonics offers a path to faster, more energy-efficient data transfer, impacting the future performance and power consumption of data centers and AI infrastructure. It's a key area of innovation.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice