What Are Interchip Optical Interconnects and Why Do They Matter?

According to the report by Next Move Strategy Consulting, the global Interchip Optical Interconnects Market size is predicted to reach USD 31.11 billion by 2030 with a CAGR of 12% from 2024-2030.

As artificial intelligence, high-performance computing (HPC), and data center workloads grow exponentially, traditional copper-based electrical interconnects are hitting their limits. Enter interchip optical interconnects—a disruptive technology aiming to transform how chips communicate by replacing electrons with photons.

In simple terms, interchip optical interconnects use light to transfer data between chips instead of electric signals. This enables higher bandwidth, lower power consumption, and dramatically reduced latency. According to Intel, their newly unveiled integrated optical I/O chiplet could unlock up to 4 times better bandwidth efficiency compared to conventional interconnects, reshaping system architectures from cloud to edge.

Click Your Free Sample Today

How Does Intel’s Optical I/O Chiplet Revolutionize Chip-to-Chip Communication?

In 2024, Intel introduced the industry’s first integrated optical I/O chiplet, called POINt (Package-Optimized Integrated Optical I/O). It represents a major milestone in the shift from copper to optical links. Designed for scalability and power efficiency, this chiplet transmits and receives data using light at extremely high speeds, bypassing traditional bottlenecks.

Key Highlights of Intel’s Optical I/O Chiplet:

• Built using Intel’s advanced packaging and photonics integration.
• Achieves data rates of 100 Gbps per wavelength with significantly less energy.
• Reduces I/O power by up to 75% and increases bandwidth density by 4× over electrical I/O.

Conclusion:
Intel’s POINt chiplet is not just an upgrade—it is a foundational step toward building scalable AI accelerators, high-density HPC systems, and edge platforms that require blisteringly fast interconnects.

• Optical chiplets deliver unmatched bandwidth at significantly reduced energy budgets.
• Seamless integration with existing silicon makes it ideal for commercial scalability.

Can MicroLEDs Enable Long-Range Terabit Optical Interconnects?

Another breakthrough in 2024 came from the use of microLEDs as compact, high-speed light sources for interchip optical links. A team of European researchers developed terabit-per-second microLED arrays that can transmit data over several centimeters, targeting applications where longer-range optical communication is needed.

Why MicroLEDs?

• Unlike traditional VCSELs or lasers, microLEDs are ultra-compact and can be scaled for parallel high-bandwidth channels.
• Their small form factor allows dense arrays of thousands of emitters on a single chip.
• Can achieve aggregate data rates in the terabit-per-second range over air or polymer waveguides.

Advantages of MicroLED Optical Links:

• Compact and scalable light emitters.
• Capable of wireless inter-chip communication.
• Potentially lower thermal and power requirements than lasers.

Conclusion:
MicroLED-based interconnects push the boundaries of long-range, high-speed chip communication. Their terabit-level throughput and scalability make them strong candidates for chip-to-chip or even board-to-board optical networking.

• MicroLEDs offer a promising path toward wireless optical chip networks.
• Useful in both high-performance computing and distributed edge systems.

How Do Optical Interconnects Overcome Limitations of Copper?

The limitations of copper interconnects are well-documented: increased resistance, crosstalk, and power consumption at higher speeds. Optical interconnects sidestep these by using photons, which do not interfere electromagnetically and can travel longer distances without signal degradation.

Conclusion:
Optical interconnects are the clear winner in future-proofing data pathways between chips.

• Copper is nearing its physical and economic limits.
• Optical interconnects offer superior scalability, lower noise, and energy savings.

Are There Real-World Applications for These Technologies in 2024?

Yes, both integrated optical I/O chiplets and microLED interconnects are already being positioned for commercial deployment in high-demand computing environments. Intel’s POINt chiplet, for example, is targeted at Data Center and AI accelerators where bandwidth and efficiency are mission-critical.

Applications in Focus:

• AI Model Training: Faster inter-chip data transfer accelerates large model training.
• HPC Clusters: Reduces latency in supercomputing workloads.
• Edge Devices: Enables high-speed communication in power-constrained environments.
• Data Center: Facilitates the disaggregation of compute and memory modules.

Conclusion:
These optical solutions are more than lab concepts—they are entering real-world deployment phases and solving pressing scalability challenges.

• AI, HPC, and cloud computing stand to benefit immediately.
• Optical interconnects support modular and disaggregated architectures.

What Is the Long-Term Outlook for Optical Interconnects?

Although optical interconnects have been researched for years, 2024 marks a turning point where commercial viability aligns with technical feasibility. With support from industry leaders like Intel and groundbreaking innovations like microLEDs, the future of chip communication is undeniably optical.

Final Summary:

• Optical I/O chiplets and microLEDs redefine chip interconnect paradigms.
• They provide unmatched speed, energy savings, and scalability.
• Commercial deployment is imminent, especially in AI and HPC systems.

Next Steps: What Should Stakeholders Do Now?

Here are actionable strategies for stakeholders looking to capitalize on the optical interconnect revolution:

1. Monitor Deployment Trends
   Stay updated on how companies like Intel are scaling optical I/O technologies across platforms.
2. Evaluate Optical Readiness
   Assess whether your current compute systems can integrate optical interconnects without major overhauls.
3. Engage with MicroLED Innovations
   Track developments from research institutes working on terabit microLED arrays.
4. Prepare for Infrastructure Shift
   Start planning for future data centers and edge devices built around optical pathways.
5. Prioritize Energy Efficiency
   Optical interconnects can help meet power and sustainability goals for high-density systems.