The Future of Integrated Photonics: Insights from the Latest IPSR-I Roadmap

Integrated photonics is emerging as a transformative force across multiple industries, from high-speed data communications and AI infrastructure to advanced sensing and autonomous vehicles. However, scaling photonic integrated circuit (PIC) manufacturing to meet global demand presents significant challenges. The latest Integrated Photonics Systems Roadmap—International (IPSR-I) provides a detailed strategy to address these obstacles, identifying key technology bottlenecks and charting a path for mass production of photonic chips.

Integrated photonics is on the cusp of a major transformation, with increasing adoption across industries such as aerospace, telecommunications, artificial intelligence (AI), and autonomous vehicles. The global push to scale photonic integrated circuit (PIC) manufacturing is gaining momentum, driven by growing demand for high-speed data transmission, compact sensing solutions, and energy-efficient computing.

Industry leaders and research institutions worldwide are working together to address key challenges in photonic integration. The focus is on streamlining manufacturing processes, improving chip design, and strengthening global supply chains to accelerate the deployment of next-generation photonic technologies.

Earlier this year, PhotonDelta, a Netherlands-based integrated photonics industry hub, and the Massachusetts Institute of Technology’s (MIT’s) Microphotonics Center unveiled the latest Integrated Photonics Systems Roadmap—International (IPSR-I). This roadmap, compiled with input from over 400 industry leaders, including Airbus, Meta, NASA, Dupont Electronics, General Motors, the European Space Agency, and VodafoneZiggo, is a critical milestone in the journey toward large-scale photonic integrated circuit (PIC) manufacturing.

As PhotonDelta CTO Peter van Arkel noted, reaching a global consensus on the roadmap was no easy task. However, the effort was well worth it, as the IPSR-I identifies key technology bottlenecks and outlines a strategic vision for overcoming them. The roadmap serves as a blueprint for addressing heterogeneous integration, wafer-level testing, packaging challenges, and the maturation of silicon photonics process design kits (PDKs)—all of which are crucial for accelerating the adoption of PICs in global markets.

Market Drivers: Where Integrated Photonics is Set to Grow

The new IPSR-I roadmap arrives at a pivotal moment, as industry analysts predict exponential growth for PICs and silicon photonics. According to IDTechEx, the global market for these technologies is expected to more than double, surpassing $22 billion within the next decade.

James Falkiner, a technology analyst at IDTechEx, stresses the importance of having a unified roadmap to guide global investment in the photonics industry. He highlights the interconnected nature of the market, where design expertise is concentrated in the U.S., top-tier photonics talent resides in Europe, and large-scale manufacturing is dominated by Asian foundries like GlobalFoundries and Samsung.

The photonics industry is experiencing rapid growth, with analysts predicting significant expansion in the coming years. The increasing need for high-performance data communication, AI-driven infrastructure, and advanced sensing technologies is driving demand for efficient, scalable photonic solutions.

One of the most promising applications of integrated photonics is in data centers and high-speed computing. With the rise of AI-powered platforms and cloud services, modern data infrastructure requires ultra-fast, low-power optical interconnects. Photonics-based transceivers are becoming a key technology in enabling the next generation of AI accelerators and hyperscale data centers.

Beyond data communications, autonomous vehicles and LiDAR-based sensing are emerging as important markets for photonic integration. The push for safer, more efficient self-driving technology is accelerating the demand for compact, high-performance LiDAR solutions, which rely on photonic chips for precise, real-time environmental mapping.

The IPSR-I roadmap points to several key industries that are driving the demand for PICs. Data communications and AI-powered data centers are at the forefront, with nearly every major telecom provider leveraging integrated photonics to support the ever-growing data traffic.

Falkiner also highlights the rapid advancements in high-performance transceivers, which rely on silicon photonics to support massive data transfer rates required by AI accelerators and hyperscale data centers. Industry leaders like Jabil-Intel, Coherent, Infinera, and Innolight have already demonstrated PIC-based transceivers capable of reaching speeds of 1.6 terabits per second (Tbps), with projections for 3.2 Tbps by 2026.

These transceivers are critical components of AI infrastructure, facilitating high-bandwidth communication between thousands of AI accelerators that power platforms like ChatGPT and Microsoft Copilot. Falkiner notes that each of Nvidia’s GPUs requires at least two 800G transceivers, further driving demand for PIC technology. With over 15,000 data centers worldwide, the exponential need for high-speed transceivers will fuel PIC manufacturing for years to come.

Another emerging market for PICs is autonomous vehicles, particularly in LiDAR applications. The roadmap highlights how LiDAR-enabled systems, essential for self-driving cars and drone navigation, could become a major growth catalyst for PICs. As the industry moves toward compact, high-performance, and cost-effective LiDAR solutions, photonic integration will play a crucial role in enabling the widespread adoption of autonomous systems.

The roadmap identifies several high-growth applications driving the demand for integrated photonics:

• High-Speed Data Centers and AI Accelerators
  With AI-powered computing and cloud services expanding rapidly, photonic interconnects are critical for handling the massive data volumes generated by AI accelerators. The industry is moving toward 1.6-Tbps and 3.2-Tbps transceivers, with demand expected to surge in the next few years.

• 5G and Next-Generation Telecom Networks
  Integrated photonics plays a vital role in fiber-optic communications and 5G network infrastructure. By improving bandwidth efficiency and reducing power consumption, photonic solutions can support the increasing data demands of global telecom networks.

• Autonomous Vehicles and LiDAR Sensors
  The roadmap highlights automotive LiDAR as a major growth area, as self-driving technology continues to advance. Photonic integration enables miniaturized, high-resolution LiDAR systems that improve vehicle perception and safety.

• Aerospace and Defense Applications
  Integrated photonics is finding new applications in aerospace and defense, particularly in secure communications, optical sensing, and quantum technologies. Lightweight, high-performance photonic systems are becoming essential for modern military and space missions.

Scaling Integrated Photonics: Key Challenges and Solutions

Despite the promising market outlook, several challenges must be addressed to enable large-scale production of photonic chips. One major issue is integrating photonic components with existing semiconductor manufacturing processes. Unlike traditional electronic chips, photonic devices require specialized materials and fabrication techniques, making standardization and mass production more complex.

Another critical challenge is reducing development cycles and manufacturing turnaround times. Currently, photonic chip production can take significantly longer than traditional semiconductor manufacturing. Streamlining design processes and improving foundry capabilities will be essential for accelerating the industry’s growth.

Additionally, global collaboration in supply chain development is crucial for ensuring a stable, high-volume production ecosystem. The photonics industry spans multiple regions, with design expertise in North America, research and talent in Europe, and large-scale manufacturing in Asia. Stronger partnerships and coordinated efforts will be necessary to support the industry’s expansion.

The IPSR-I roadmap outlines several fundamental challenges that must be overcome to accelerate the adoption of photonic technologies:

1. Heterogeneous Integration: The Need for Seamless Electronics-Photonics Co-Design

One of the most pressing challenges identified is the need for heterogeneous integration, where multiple photonic and electronic components—such as lasers, detectors, modulators, and waveguides—must be tightly integrated on a single chip. Unlike traditional silicon electronics, photonic devices rely on multiple material platforms, including silicon, indium phosphide (InP), and lithium niobate (LiNbO₃). The roadmap emphasizes the need for new design methodologies that bring these materials together efficiently while ensuring high performance across applications.

2. Advancing Wafer-Level Testing and Packaging

Photonics manufacturing still lags behind the semiconductor industry in terms of wafer-level testing and packaging efficiency. The IPSR-I highlights the importance of developing scalable test and packaging solutions that reduce manufacturing cycle times. Without significant advancements in automated testing, photonic chip production will remain costly and time-intensive.

3. Standardizing Process Design Kits (PDKs) for Silicon Photonics

The roadmap stresses that silicon photonics process design kits (PDKs) must mature to accelerate chip development. Currently, discrepancies between PDK models and fabricated devices create inefficiencies in the design cycle. By improving PDK accuracy and ensuring alignment with foundry processes, companies can reduce design iterations and speed up time-to-market for photonic products.

4. Enhancing Global Supply Chain Coordination

The IPSR-I underscores the need for better global supply chain integration, as photonics development is currently fragmented across different regions. The U.S. leads in photonic design and innovation, Europe has strong expertise in research and development, and Asia dominates large-scale manufacturing. Building a globally coordinated supply chain will be crucial for mass production, cost reduction, and ecosystem stability.

The Path Forward: Accelerating Photonic Innovation

With increasing investment and innovation, the future of integrated photonics looks promising. Efforts to improve manufacturing efficiency, enhance chip performance, and expand market applications will shape the next phase of industry growth. As photonic technologies continue to evolve, they are set to play a critical role in powering AI, enabling next-generation communication networks, and advancing autonomous systems.

By addressing current challenges and fostering global collaboration, the photonics industry is well-positioned to drive technological breakthroughs and unlock new opportunities in the years ahead. The latest IPSR-I roadmap makes it clear that while challenges remain, the photonics industry is well-positioned for exponential growth. By focusing on heterogeneous integration, advanced packaging, PDK standardization, and global supply chain coordination, the industry can unlock new levels of scalability and efficiency.

The latest IPSR-I roadmap provides a vital strategic framework for achieving this vision. By fostering greater international collaboration, improving design and manufacturing efficiencies, and addressing key technological challenges, the roadmap serves as a guiding document for industry leaders, policymakers, and investors.

As van Arkel emphasized, “At the heart of the roadmap is a global approach for the photonics industry to rally behind to meet the core challenges.” With momentum building across multiple sectors, the age of integrated photonics is well underway—and the latest IPSR-I roadmap will be instrumental in shaping its trajectory. With strong investment, continued innovation, and strategic global collaboration, integrated photonics is set to reshape computing, communications, and sensing technologies for decades to come.