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Elektronica IITH

Electronics and Signal Processing Club of IIT Hyderabad

Photonic Chips!

The Quiet Revolution Rewiring Our World

10 min readSep 6, 2026

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Why now?

  • The cloud is hungry.
    Right now, data centers are consuming massive amounts of power to run the AI, search engines, streaming platforms, and apps you use every day. But behind the screens, Traditional microchips rely on electrons moving through copper wires. As components get smaller and data demands (especially from AI) skyrocket, electrons bump into each other and the copper itself. This creates massive resistance, which generates heat (Joule heating) and wastes energy.
  • The Wall: We are hitting the physical limits of Moore’s Law. We can’t cram transistors much closer together without the chip melting or experiencing quantum tunnelling (electrons jumping where they shouldn’t).

A tiny chip is going to pull off a magic trick, doing real computing with light, not electricity!!!

Researchers say that a Photonic processor can cut energy use up to 30 times and boost speed up to 50 times for AI training jobs. Those numbers sound massive! So, let’s slow down and inspect the idea:

How do you store information in light? And how do you read an answer back out today?

The Looming Power Crisis…

Some forecasts suggest that by 2030, the demand for electricity in data centres worldwide will quadruple.

Why the jump?

While our expanding digital lives — more video streaming, cloud storage, and real-time services — play a part, Artificial Intelligence is the ultimate accelerator. Training and running massive neural networks requires an astronomical amount of math.

In traditional computing, that math inevitably creates heat. Heat forces data centers to run massive cooling infrastructure, turning temperature control into a second, staggering power bill. This hits both corporate budgets and global climate goals simultaneously.

This is exactly where photonic computing comes into the picture. If an optical processor can execute the same AI workloads using a fraction of the energy, the equation changes. We can scale computing power without scaling cooling hardware at the same devastating pace. That could make future AI growth feel less like an electricity crisis and more like progress. That is the promise behind the photonic chips.

Silicon Photonics:

  • How classic chips compute:

A modern processor is built on a semiconductor — most commonly silicon — and packed with billions of microscopic transistors that act like digital switches. Link enough of these switches together, and you get logic, instructions, and computation. Because these chips are digital, they represent all information using just two binary states: 0 and 1.

While this design is incredibly stable and precise, it comes with a steep physical tax. When electrons move through silicon, they encounter resistance, and that resistance inevitably turns electrical energy into heat. If you try to push a chip to run faster, those switches must flip more frequently, causing the temperature to skyrocket even further.

At tiny scales, even moving data across the chip becomes hard because signals fight delay, capacitance and noise. Many operations also happen in a strict sequence. So you wait for step 1 to complete before starting the 2nd step.

Finally, there is the conversion tax. The real world doesn’t exist in binary; images, sounds, and sensor signals start as smooth, continuous analogue waves. Before a digital chip can even begin to process them, you have to translate those fluid waves into massive strings of zeroes and ones, perform the heavy math, and sometimes translate them back. It works, but it burns massive amounts of power and valuable chip real estate just to translate the world into a language silicon can understand.

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  • How Photonic chips compute:

A photonic chip fundamentally rewrites the rules of hardware by replacing electrical currents with guided beams of light. Instead of forcing electrons to squeeze through restrictive metal wires, photons glide through microscopic channels called optical waveguides. You feed the chip with laser light, and then shape that light as it travels. Where an electronic chip relies on billions of transistor switches, a photonic chip uses miniature optical components that split, combine, delay, filter, or shift the phase of the light.

Because light behaves like a wave, it can carry information in several elegant ways simultaneously. You can encode values into its amplitude (the height and brightness of the wave). You can encode them into their phase (the timing of the wave’s peaks and valleys relative to another wave). You can even use Polarisation (the orientation of the wave’s vibrations).

But the real magic happens when you introduce optical interference.

When two or more light waves cross paths, they merge. If their peaks line up, they amplify each other (constructive interference); if a peak meets a valley, they cancel each other out (destructive interference). This natural blending of waves creates a brand-new light pattern. In the world of optics, that pattern isn’t just pretty physics — it represents the mathematical result of a calculation. Because this happens instantly as the light passes through the chip, a photonic processor can execute the massive “multiply-and-add” steps common in AI workloads at nearly the speed of light, using virtually zero energy for the math itself. And because photons don’t fight electrical resistance, moving this data across the circuit generates negligible heat.

One detail matters: Photonic chips still live inside electronic systems.

Data today arrives from computer memory as a traditional electrical signal. Therefore, it must undergo an electro-optical translation at the input, where modulators stamp that digital data onto the laser beams. Once the optical math is completed, high-speed photodetectors catch the light at the output, converting the photons back into electrical voltages so the rest of the computer can store and use the results. It is a hybrid ecosystem: electronics handle the memory and logic, while photonics handles the high-speed computation and transit.

So, the chip is not pure light, but using light for the heavy math can still change the speed and the energy budget.

Why Analogue and Parallel Computation Shatter the Power Curve?

Many photonic designs are inherently analogue, meaning they process continuous physical values instead of chopping data into rigid, binary 0s and 1s. While analogue computing fell out of favour decades ago for general tasks because it lacks the absolute precision of digital logic, it turns out to be a flawless match for modern AI.

Neural networks spend nearly all of their time executing millions of repetitive “multiply-and-accumulate” (MAC) operations on massive arrays of numbers. In a traditional digital chip, every single number must be sliced into a string of bits (like a 16-bit or 32-bit float), hauled across copper wires to a logic gate, processed switch-by-switch, and then rebuilt and stored back in memory. This constant movement and switching of electronic bits creates a massive energy drain known as Ohmic heating.

On top of this analogue efficiency, photonics introduces a massive unfair advantage: massive parallelism.

In an electronic wire, you can only send one electrical signal at a time; pack them too closely, and the signals bleed into each other (crosstalk). Light doesn’t care. Through a technique called Wavelength Division Multiplexing (WDM), a single optical waveguide can carry dozens of different colours of light simultaneously, with each colour acting as an independent data lane. Furthermore, you can stack information by adjusting a single wave’s phase and amplitude at the same time.

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In the best-case scenario, a single photonic circuit can process multiple mathematical arrays in parallel, in the same physical space, at the exact same fraction of a second. This is why photonics is being heralded as the ultimate AI accelerator.

The dream is simple: faster AI math with a smaller Electricity bill, as long as the system stays accurate enough for the job.

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To demonstrate the chip’s capabilities, the researchers encoded and processed two separate images simultaneously, showing that the system can manage multiple streams of information at the same time (Parallelism).

Inside a Photonic chip

If you were to slice open a state-of-the-art photonic processor, you wouldn’t just see silicon. Instead, you would find an incredibly thin layer of a synthetic crystal called Lithium Niobate (LiNbO3)bonded tightly on top of a silicon base.

Lithium Niobate (LiNbO3)

Here are the key anatomical features that allow this hybrid chip to manipulate light waves with nanometer precision:

  • The Substrate (The Foundation): At the very bottom sits a standard silicon wafer. It acts as the structural bed, allowing these chips to be manufactured in existing semiconductor mega-fabs without rewriting the entire supply chain.
  • The Waveguides (The Light Tracks): Etched directly into the Lithium Niobate layer are microscopic ridges. Because of Lithium Niobate’s unique refractive properties, it traps photons inside these ridges like a miniature mirror-lined subway system, guiding the light across the chip with zero leakage.
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The anatomy of a Thin-Film Lithium Niobate (TFLN) chip: light travels through the etched LN track while electrodes control its phase. Source: ResearchGate
  • The Modulators (The Gas Pedals): Lithium Niobate possesses a powerful electro-optic effect — meaning if you apply a tiny electrical voltage to it, its refractive index instantly changes. By placing tiny gold electrodes alongside the waveguide, the chip can change the speed, phase, or brightness of the passing light billions of times per second.
  • The Beam Splitters (The Math Engines): As the laser light zooms through the tracks, it hits geometric Y-junctions that perfectly split a single beam into two identical paths. The chip intentionally delays one path relative to the other before bringing them back together.

When those split paths collide at the finish line, they create an optical interference pattern. Because this blending of waves happens continuously as the light moves, the resulting brightness or phase of the combined wave is the mathematical answer. High-speed photodetectors then capture this pattern, converting the analogue waves back into conventional electrical voltages for your computer’s RAM to store.

Diverse Applications of Photonic Chips

  • Telecommunications: Powering ultra-high-speed fibre-optic networks and the core infrastructure behind massive 5G/6G backbones.
  • Data Centers: Eliminating data congestion, driving down latency, and slashing energy overhead for massive cloud computing clusters and hyperscale AI training networks.
  • Artificial Intelligence: Utilizing specialized Optical Neural Networks (ONNs) to execute massive, compute-heavy matrix multiplications simultaneously at the speed of light.
  • Advanced Sensing & Quantum: Enabling ultra-precise, label-free biomedical diagnostics, providing exact qubit manipulation for quantum computing architectures, and driving solid-state LiDAR systems for autonomous vehicles.
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Advantages of Photonic Chips

  • Unparalleled Bandwidth Density: Photonic links can transmit data at multi-terabit speeds over a single optical channel, bypassing the severe physical data bottlenecks of copper wiring.
  • Extreme Energy Efficiency: Cuts power consumption per bit by up to 70% compared to traditional electronic transceivers, drastically flattening the carbon footprint of massive compute clusters.
  • Zero-Resistance Thermal Management: Because photons carry no charge, they generate negligible heat while travelling through a waveguide — completely preventing the severe thermal throttling that cripples high-performance electronic CPUs.
  • Total Electromagnetic Resilience: Immune to electromagnetic interference (EMI) and radio-frequency noise, making optical chips uniquely suited for extreme environments such as space exploration, defence, and heavy industrial settings.
  • Ambient-Temperature Operation: Unlike quantum processors or superconducting electronics that require complex, million-dollar cryogenic cooling setups to hover near absolute zero, photonic chip engines operate flawlessly at room temperature, making them instantly viable for commercial, real-world deployment.

The hard limits and the real future

Photonic computing has 2 big hurdles: Accuracy and integration.

The first issue stems from the chaotic nature of the physical world. Because analogue signals are continuous, they are inherently prone to environmental drift. As light travels through longer and more intricate optical loops, tiny microscopic variations — caused by subtle temperature fluctuations or structural imperfections in the chip — begin to stack up into computational errors.

To put this in perspective, consider numerical precision. State-of-the-art AI-focused photonic chips can typically achieve an accuracy of about four decimal places (roughly equivalent to 8-bit ). While that is a massive triumph for optical engineering, it pales in comparison to a standard smartphone or laptop processor, which easily computes with up to 15 or 16 decimal places of precision (64-bit floating-point math).

For broad AI workloads like large language models or image recognition, this “fuzzy” lower precision is perfectly acceptable — neural networks thrive on approximations. But for rigid digital tasks like cryptography, database management, or high-frequency financial ledgers, a missing decimal place is catastrophic.

We live in a world where data is stored, routed, and managed electrically. Every time a photonic chip wants to perform a calculation, that data must undergo a costly transformation. It requires ultra-fast electro-optical modulators to turn electrical bits into light waves, and highly sensitive photodetectors to turn those waves back into electricity.

The real future of computing isn’t a total optical takeover. Instead, it is a deeply integrated, hybrid architecture. The ultimate goal is Co-Packaged Optics (CPO), where traditional silicon brain cells and Lithium Niobate light-highways are fused onto the same microscopic package. Electronics will keep track of the rules, memory, and precision, while photonics will handle the heavy data hauling and lightning-fast AI math.

Conclusion

Photonics is also often discussed next to quantum tech, especially for secure communication. Because photons can carry quantum information. That does not make this a quantum computer, but it helps explain the buzz. For now, the most likely impact is in the data centers, not home gaming PCs, especially as more computing moves to the cloud. Photonic chips are not a simple swap for today’s CPUs. They are more like a new kind of engine built for one brutal job: moving and mixing astronomical datasets for AI with less heat and less waste.

The promise is clear. If computing can ride on light, the cloud could grow without eating the grid, and that would change everything in the next decade!!!

Written by Beeram Madhuri

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Elektronica IITH
Elektronica IITH

Written by Elektronica IITH

Electronics and Signal Processing Club of IIT Hyderabad