14 July 2025

Photonic Integrated Circuits (PICs) are to optics what microchips are to electronics—embedding optical components like lasers, detectors, and waveguides onto a single chip. This integration delivers higher speed, lower energy consumption, and smaller size compared to discrete optical systems. PICs are essential for applications ranging from high‑speed data centres and telecom to automotive LiDAR, sensing, and quantum computing.

The EU's Chips Act, part of the broader “Chips for Europe” strategy, is central to the development of a PICS ecosystem in the EU. Supported by the European Chips Act, the PIXEurope initiative has announced it will invest EUR 400 million to advance the development and pilot fabrication of integrated photonic chips in Europe. Renowned Finnish research organisation VTT has joined the initiative, providing the pilot line with expertise in thick silicon-on-insulator (SOI) technology.  This is an exciting development for both VTT and the broader European photonics ecosystem, according to Timo Aalto, Research Team Leader for VTT's Silicon Photonics Team.

What Are PICS And Why Are They Important?

Aalto explains that Photonic Integrated Circuits (PICs) are like the light-based version of electrical integrated circuits (ICs): “Instead of using electricity to move signals around (like in your computer or smartphone), PICs use light—usually lasers or other optical signals.”

PICs are more versatile than conventional chips, he adds, and here’s why:

- Light can carry more data, faster than electricity. This makes PICs great for high-speed communication, like internet data or 5G/6G.

- Light doesn’t create as much heat or interference as electricity, so PICs can be more energy-efficient and precise.

- PICs can sense things—like chemicals, temperature, or movement—without touching them. That’s useful in medical devices, environmental monitoring, and industrial sensing.

- You can use different colours (wavelengths) of light at the same time, like lanes on a highway, which allows PICs to do more things in parallel.

“So while both types of chips miniaturize complex systems onto a single platform, PICs can handle tasks that traditional electronics can't, especially where speed, precision, or sensing are critical,” Aalto elaborates. ”That’s why they’re increasingly used in healthcare, autonomous vehicles, quantum computing, and AI.”

What Makes VTT A Centre Of Expertise In PICS

VTT’s PICs are among the most dense and efficient globally, covering wavelengths from visible to mid-infrared. Beyond chip design, their in‑house Micronova cleanroom facility excels in R&D and pilot production, enabling prototyping and integration of optical MEMS mirrors, Fabry–Pérot interferometers (used in gas sensing, medical diagnostics, and remote sensing), as well as hybrid integration with III‑V components and packaging. They also develop large-area, printed photonics—roll-to-roll photonic systems on plastic foils—for applications like smart diagnostics or lighting. Additionally, VTT excels in advanced packaging of photonic and RF modules via Low-Temperature Co-fired Ceramics (LTCC), fibre pigtailing, hermetic sealing, and hybrid or heterogeneous integration—key for robustness in 5G, aerospace, sensing, and quantum systems. In short, VTT offers comprehensive photonics capabilities—design, prototyping, fabrication, packaging, integration—fuelling applications from 6G, AI, LiDAR, sensing, medical devices, to quantum.

PIXEurope – Why It Matters

VTT’s heavy involvement in PIXEurope further underscores their leadership in Europe’s photonic innovation ecosystem. Coordinated by the Spanish-based Institute of Photonic Sciences (ICFO) the PIXEurope pilot line aims to establish the first open access PIC ecosystem in Europe. There are several PIC technologies available with different strengths, and the pilot line gathers them all together for the first time in Europe to offer solutions for different applications and to cover wavelengths from ultraviolet and visible light up to mid-infrared.

Apart from PIC design and manufacturing, hybrid integration, packaging and testing of PICs are also part of the pilot line activities. The users can utilise the developed pilot line technologies by taking advantage of Process Design Kits (PDKs) that are made available for end users. By combining multiple functions into a single chip, PICs reduce manufacturing costs and open up new applications, positioning Europe as a leader in photonics technology. "From VTT, we bring to the pilot line our mature Thick-SOI PIC technology and improve it further," Aalto elaborates.

VTT's thick-SOI PIC platform already offers a unique combination of low optical losses, dense integration and broad wavelength range. As part of the PIXEurope pilot line, VTT will invest in new equipment for processing SOI wafers in VTT's Micronova cleanroom. New equipment allows for the improvement of the patterning resolution and surface smoothness of the optical waveguide structures that guide light in the PICs, and to integrate other materials on the SOI wafers for additional functionalities, such as fast light modulation and detection.

In addition to its own PIC technology development, VTT has a key role in leading a work package, where the development of all monolithic PIC technologies is carried out by multiple pilot line partners. The monolithic PIC platforms form the foundation on which additional PIC materials are added in other work packages.

"VTT is honoured to contribute to the PIXEurope pilot line with world leading know-how in the integrated photonics field. Our participation in PIXEurope complements our strong presence in the Chips JU microelectronics pilot lines.  We are committed to working towards a unified European photonics ecosystem," said Piia Konstari, VTT Director of Microfabrication services, in a press release on the subject.

Why The EU Invests in PICs

PICs are already crucial to terabit-wide data transport in the telecom industry. Major players such as Infinera, Intel, and Cisco produce PIC-powered optical transceivers, driving demand for faster, greener communications infrastructure. New high-volume markets include medical diagnostics (lab-on-chip), environmental sensing, LiDAR for autonomous vehicles, and wearable health devices.

But Europe is lagging behind somewhat in this field. Industry leaders warn that Europe currently accounts for less than 6% PIC fabrication and under 4% of assembly/testing capacity—risks made stark by global supply chain fragility.  European pilot lines (PIXEurope, APECS) and national R&D systems (VTT in Finland, TNO in the Netherlands, among others) should accelerate the trajectory from research and design to production and commercialization. Industry analysts have estimated that around €4.25 billion is being requested over eight years to secure industrial scale PIC manufacturing, test infrastructure, and vertical integration.

To Aalto, it’s clear that Europe must invest heavily, and he emphasises that VTT will continue to do its part. “We can support research and European industry with our in‑house Micronova cleanroom facility, which is very versatile. Through PIXEurope, we help to enable versatile prototyping and scale‑up of complex PIC designs rooted in silicon photonics. This supports rapid innovation and moves PICs closer to market-ready application,” I hope our role will become even more important in the future.”

PIXEurope is a five-year long effort with final results expected in 2030.

Photonic Integrated Circuits (PICs) are to optics what microchips are to electronics—embedding optical components like lasers, detectors, and waveguides onto a single chip. This integration delivers higher speed, lower energy consumption, and smaller size compared to discrete optical systems. PICs are essential for applications ranging from high‑speed data centres and telecom to automotive LiDAR, sensing, and quantum computing.

The EU's Chips Act, part of the broader “Chips for Europe” strategy, is central to the development of a PICS ecosystem in the EU. Supported by the European Chips Act, the PIXEurope initiative has announced it will invest EUR 400 million to advance the development and pilot fabrication of integrated photonic chips in Europe. Renowned Finnish research organisation VTT has joined the initiative, providing the pilot line with expertise in thick silicon-on-insulator (SOI) technology.  This is an exciting development for both VTT and the broader European photonics ecosystem, according to Timo Aalto, Research Team Leader for VTT's Silicon Photonics Team.

What Are PICS And Why Are They Important?

Aalto explains that Photonic Integrated Circuits (PICs) are like the light-based version of electrical integrated circuits (ICs): “Instead of using electricity to move signals around (like in your computer or smartphone), PICs use light—usually lasers or other optical signals.”

PICs are more versatile than conventional chips, he adds, and here’s why:

- Light can carry more data, faster than electricity. This makes PICs great for high-speed communication, like internet data or 5G/6G.

- Light doesn’t create as much heat or interference as electricity, so PICs can be more energy-efficient and precise.

- PICs can sense things—like chemicals, temperature, or movement—without touching them. That’s useful in medical devices, environmental monitoring, and industrial sensing.

- You can use different colours (wavelengths) of light at the same time, like lanes on a highway, which allows PICs to do more things in parallel.

“So while both types of chips miniaturize complex systems onto a single platform, PICs can handle tasks that traditional electronics can't, especially where speed, precision, or sensing are critical,” Aalto elaborates. ”That’s why they’re increasingly used in healthcare, autonomous vehicles, quantum computing, and AI.”

What Makes VTT A Centre Of Expertise In PICS

VTT’s PICs are among the most dense and efficient globally, covering wavelengths from visible to mid-infrared. Beyond chip design, their in‑house Micronova cleanroom facility excels in R&D and pilot production, enabling prototyping and integration of optical MEMS mirrors, Fabry–Pérot interferometers (used in gas sensing, medical diagnostics, and remote sensing), as well as hybrid integration with III‑V components and packaging. They also develop large-area, printed photonics—roll-to-roll photonic systems on plastic foils—for applications like smart diagnostics or lighting. Additionally, VTT excels in advanced packaging of photonic and RF modules via Low-Temperature Co-fired Ceramics (LTCC), fibre pigtailing, hermetic sealing, and hybrid or heterogeneous integration—key for robustness in 5G, aerospace, sensing, and quantum systems. In short, VTT offers comprehensive photonics capabilities—design, prototyping, fabrication, packaging, integration—fuelling applications from 6G, AI, LiDAR, sensing, medical devices, to quantum.

PIXEurope – Why It Matters

VTT’s heavy involvement in PIXEurope further underscores their leadership in Europe’s photonic innovation ecosystem. Coordinated by the Spanish-based Institute of Photonic Sciences (ICFO) the PIXEurope pilot line aims to establish the first open access PIC ecosystem in Europe. There are several PIC technologies available with different strengths, and the pilot line gathers them all together for the first time in Europe to offer solutions for different applications and to cover wavelengths from ultraviolet and visible light up to mid-infrared.

Apart from PIC design and manufacturing, hybrid integration, packaging and testing of PICs are also part of the pilot line activities. The users can utilise the developed pilot line technologies by taking advantage of Process Design Kits (PDKs) that are made available for end users. By combining multiple functions into a single chip, PICs reduce manufacturing costs and open up new applications, positioning Europe as a leader in photonics technology. "From VTT, we bring to the pilot line our mature Thick-SOI PIC technology and improve it further," Aalto elaborates.

VTT's thick-SOI PIC platform already offers a unique combination of low optical losses, dense integration and broad wavelength range. As part of the PIXEurope pilot line, VTT will invest in new equipment for processing SOI wafers in VTT's Micronova cleanroom. New equipment allows for the improvement of the patterning resolution and surface smoothness of the optical waveguide structures that guide light in the PICs, and to integrate other materials on the SOI wafers for additional functionalities, such as fast light modulation and detection.

In addition to its own PIC technology development, VTT has a key role in leading a work package, where the development of all monolithic PIC technologies is carried out by multiple pilot line partners. The monolithic PIC platforms form the foundation on which additional PIC materials are added in other work packages.

"VTT is honoured to contribute to the PIXEurope pilot line with world leading know-how in the integrated photonics field. Our participation in PIXEurope complements our strong presence in the Chips JU microelectronics pilot lines.  We are committed to working towards a unified European photonics ecosystem," said Piia Konstari, VTT Director of Microfabrication services, in a press release on the subject.

Why The EU Invests in PICs

PICs are already crucial to terabit-wide data transport in the telecom industry. Major players such as Infinera, Intel, and Cisco produce PIC-powered optical transceivers, driving demand for faster, greener communications infrastructure. New high-volume markets include medical diagnostics (lab-on-chip), environmental sensing, LiDAR for autonomous vehicles, and wearable health devices.

But Europe is lagging behind somewhat in this field. Industry leaders warn that Europe currently accounts for less than 6% PIC fabrication and under 4% of assembly/testing capacity—risks made stark by global supply chain fragility.  European pilot lines (PIXEurope, APECS) and national R&D systems (VTT in Finland, TNO in the Netherlands, among others) should accelerate the trajectory from research and design to production and commercialization. Industry analysts have estimated that around €4.25 billion is being requested over eight years to secure industrial scale PIC manufacturing, test infrastructure, and vertical integration.

To Aalto, it’s clear that Europe must invest heavily, and he emphasises that VTT will continue to do its part. “We can support research and European industry with our in‑house Micronova cleanroom facility, which is very versatile. Through PIXEurope, we help to enable versatile prototyping and scale‑up of complex PIC designs rooted in silicon photonics. This supports rapid innovation and moves PICs closer to market-ready application,” I hope our role will become even more important in the future.”

PIXEurope is a five-year long effort with final results expected in 2030.