At every industry event discussing Photonic Integrated Circuits (PICs), the high cost and technical complexity of PIC packaging is a recurring topic. It is widely acknowledged that packaging constitutes the most significant portion of a PIC-based product’s total cost. Furthermore, the technical challenges involved make it an arduous process, requiring highly specialized expertise. These two factors alone are enough to give pause to companies considering bringing a PIC-based product to market.
However, at PHIX, we saw these challenges as an opportunity. When we started the company in 2018, our goal was to become experts in addressing the intricate technical hurdles of PIC packaging while simultaneously developing cost-effective solutions. By doing so, we have established ourselves as a valuable partner for businesses aiming to commercialize PIC-based products across diverse industries.
Having worked with PICs from all major foundries globally, we have encountered and solved a vast range of packaging challenges. We have attached fibers in every conceivable configuration and integrated various types of lasers into many designs. Despite the common reference to “PIC packaging,” the reality is that PICs are often integrated as bare die alongside other PICs, fibers, and micro-optics within a single module. The cost of materials for these modules can often surpass the cost of the PIC itself, significantly driving up the overall expense, more than the assembly process itself.
Addressing these cost drivers requires innovative thinking. Next to standardization and scaling towards volume, alternative configurations, such as wafer-level or panel-level assembly, offer promising pathways to reducing material and production costs. Housing and casing materials also present opportunities for cost optimization. Given these strategies, there is no fundamental reason why, at high volumes, PIC-based products should not adhere to the same cost structure as other advanced high-tech products—where approximately 80% of the cost comes from bill of materials and 20% from assembly and testing.
Beyond cost, the challenge remains in identifying applications that fully leverage the unique advantages of PIC technology. In the field of data communications, PICs have already secured a strong foothold, particularly in transceiver products. However, the potential for PIC applications extends far beyond this. Emerging fields such as LiDAR, biosensing, industrial sensing, quantum computing, augmented and virtual reality (AR/VR), and optical phased arrays all stand to benefit from PIC-based solutions.
As a development and assembly service provider, we work with a wide array of companies in these application areas, assisting them in transforming their innovations into viable products. Many of these firms are on the verge of commercialization, with timelines targeting market entry within the next one to three years. As these products reach maturity, we anticipate a significant expansion of PIC-based applications beyond data communications, marking a new era of photonic integration across industries.
The road to market adoption for PICs remains challenging, but with the right approach, expertise, and cost-efficient packaging solutions, the potential for widespread impact is immense. At PHIX, we are excited to be at the forefront of this evolution, enabling the next generation of photonic technologies to reach their full potential.
