Silicon Photonics Market & Applications 2013
Fields of Expertise Yole Developpement is a market, technology and strategy consulting company, founded in 1998. We operate in the following areas: Power Electronics Photovoltaic Microfluidic & Med Tech Advanced Packaging HB LED, LED & LD Equipment and materials MEMS & image sensors Our expertise is based on research done by our in-house analysts, conducting openended interviews with most industry players. 30+ full time analysts with technical and marketing degrees Primary research including over 3,500 interviews per year 2012 2
Our Global Activity 40% of our business is in EU Countries 30% of our business is in North America Yole Inc. Yole Paris S+C Yole Développement Lyon HQ 30% of our business is in Asia Yole Korea Yole Japan Yole Taiwan 2012 3
Yole Activities in a Nutshell MEDIA News feed / Magazines / Webcasts REPORTS Market & technology Patent Analysis Reverse costing report CONSULTING Market research Technology & Strategy Patent Analysis www.yole.fr YOLE FINANCE M&A / Due Diligence / Fund raising services 2012 4
Content Si Photonics challenges Si Photonics applications & markets Industry status Conclusions 2012 5
2012 6 Si photonics in the news since January 2013 (a few extracts)
Silicon Photonics A disruptive technology: new breed of monolithic opto-electronic devices in a potential low cost Si process. The vision: to deliver optical connectivity everywhere, from the network level to chip-to-chip. Today, except for the light source, many optical functions can be embedded at the SOI wafer level. Optical die (SOI wafer) 2012 7 Source Luxtera
Optical Interconnects 1000 km 10 km Long Haul Metro/LAN Optics Since 90 s Thousands 100 m Optical Fiber Rack-to-rack Optics Since 2000 1 m Board-to-board The Current Step Millions 0.1 m < 0.01m Optical Waveguides Chip-to-chip On-chip Optics Beyond 2015 Billions Distance Volumes 2012 8
Example: the Data Center and HPC Problem Distance expands beyond 1 km 40G moving to 100G VCSELs are not adequate Single mode transceivers big, expensive & power hungry Interconnects become the system design limiter; silicon photonics will be a solution. 2012 9
Silicon Photonics Potential advantages & challenges Low environmental footprint Low heating of components Low Power Consumption Still high for high perf modules (target is fj/b) Impact on reliability Low operating costs Higher optical functions integration SiPh Low manufacturing cost Higher density of interconnects Integration But no complete integration (laser) No full CMOS process (Ge) Packaging issues Reliability Telecom standard Operation speed vs. InP Polarization dependency Low error rate Spectral efficiency 2012 10
Silicon Photonics Time to market by application AOCs for HPC (Already exists) Low Power Consumption Active Optical Cables for Data Centers Expected time to market Short term Medium term Long term Integration Active Optical Cables (Consumer) Fiber Optics Networks FTTx Telecom/Datacom Board-to-board Chip-to-chip Very High Speed Telecom Medical Fiber Optics Network Metropolitan Reliability Fiber Optics Networks Long Haul 2012 11
Silicon Photonics Challenges 1. Few products - most of the industry has been focused on developing individual silicon photonics elements and cores. Modulators, VOAs, switches, laser arrays, detector arrays, etc. Few companies have developed integrated product solutions. 2. High cost devices have been expensive to develop Silicon photonics companies have had to create their own CAE/CAD programs. Several efforts have been established to promote CAE/CAD design tools. E.g. OpSIS and LETI-Mentor. 3. Technical mismatches - with high volume markets Data centers want 850-nm and 1310-nm. 4. Competition with VCSEL VCSEL-based interconnects dominate both the data center and consumer areas with very low prices. 5. Need for high volumes/low cost - Silicon Photonics has not been able to achieve high enough volumes so far. Consumers want cheap products. 2012 12
Applications Examples Data rate Telecom Datacom Consumer HPC & Data Centers Commercial Video Metrology and sensors Medical Military/ Aerospace/ Scientific Used in Metro (1-80Km) and long haul applications (40-1,000 Km) Used in data centers (<1m - 2Km) and campus applications (1-5Km) Connecting desktop PC devices and PCs with HDTVs One High Performance Computer supercomputer may consume 40,000 AOCs or 250,000 mid-board modules Digital signage, digital cinemas, video recording and studios; 4xx2K displays and recording equipment Measurement of time, temperature, sound, frequency, and stress, range DNA, glucose, molecular and cellular analysis, etc. Used in scientific instruments at corporate and national labs; aircraft, space, missiles, radar, imaging and intelligence applications. 10G, 40G, 100G, 400Gbps systems 10G, 25G, 40G, 100Gbps interconnects between systems 5G - 50Gbps Up to 100 Gbps 10G - 50Gbps interconnects Typically low data rates but using special silicon photonics sensors Typically low data rates but using special silicon photonics sensors High 2012 13
Telecom Telecom needs: Very high data rates Complex modulation systems Support for industry standards 25 years reliability Silicon photonics Variable Optical Attenuator Metro needs: Optical functionalities (e.g. ROADMs) Slower data rates Less complex modulation. InP Laser Transmitter Optical Engines But InP Integrated photonics has already entered these markets mainly in FTTx and telecom transmitters and receivers. 2012 14
Datacom Datacom products roadmap: Active Optical Cables - today Ex: Luxtera/Molex offesr silicon photonics-based AOCs. All others are VCSEL-based. Main applications: HPC supercomputers, Ethernet data center. Line rates moving from 10G and 14G to 28G. QSFP, CxP AOCs (Luxtera, Finisar) SFP+ QSFP, CFP transceivers Transceivers for switching & routing near term 2014+ likely applications (when 100G silicon photonics products will be announced ) Luxtera, Kotura demonstrated 4 x 25G transceiver engines at tradeshows mid-board modules (Avago) Servers to switches 2016+ High volume application dwarfing all others 2012 15
Others applications, e.g. medical, sensors Medical applications: Special uses for silicon photonics in chemical, cellular and DNA analysis. Example: Protein detection with ring resonator biosensor Genalyte (San Diego, CA) makes chips used for real-time measurement of protein interactions (DNA, molecules, etc.). Advantage is high sensor integration with very small footprints. Single molecule spectroscopy And also sensors based on silicon photonics that integrate multiple sensors e.g. Stress and strain optical systems, Optical time domain reflectometers (OTDR) measure distances in fibers. 2012 16
Wavelength limitation Datacom/telecom requirements: Multi-vendor interopearablity with standards Data centers demand 850nm. Going forward, the wavelength for silicon photonics is moving to 1310-nm and 1550nm Meet datacom/telecom industry standards and requirements could help the market expand. 2012 17
Optical Components Market Size Silicon Photonics % of Optical Components 2017 TOTAL ~$9.5B 2% Source Yole Developpement July 2012, Optical Components Industry Silicon photonics - All 98% Silicon photonics represents a small percentage of the optical communications component industry. 2012 18
Molex AOC with Luxtera Si Photonic Die 2012 19
2012 20 Laser Module from Luxtera
Players Si Photonics Activity (2012) OpSIS foundry services uses BAE & IME foundries JePPIX foundry uses Oclaro & FhG HHI foundries (InP) epixfab uses IMEC & LETI foundries Product Manufacturing (> 100,000 chips) Product Manufacturing (< 100,000 chips) R&D/ Development Stage R&D/MPW Fabless Foundries Devices Systems 2012 21 Business model
Foundry services are coming University MPW foundries Commercial CMOS Photonics foundries Commercial InP / Silica on Silicon / etc. foundries 2012 22
Funds Raised by Company $600,0 $500,0 Raised Funds: US$ in Millions (Total is $1.4B) $528,3 Red: Non-Si integrated photonics Green: Si integrated photonics $400,0 $300,0 $333,7 Total funding for Si photonics companies: ~$270 millions $200,0 $214,7 $100,0 $0,0 $120,1 $85,9 $52,8 $40,0 $34,3 $23,0 $2,1 $0,2 2012 23 Note: Infinera, NeoPhotonics, Cyoptics, OneChip develop InP products, and may or may not introduce silicon photonics products
Kotura NeoPhotonics Infinera ColorChip Infinera NeoPhotonics Cyoptics Cyoptics NeoPhotonics Infinera Infinera ColorChip Infinera ColorChip Cyoptics NeoPhotonics Infinera ColorChip Infinera Kotura Relative Investment Efficiency Integrated photonics faced a downturn in the years 2004-2005, while the year 2000 was a real bubble for integrated photonics investors. For readability reasons, Lightwire s acquisition by Cisco was omitted: its efficiency was over 1835%. 350,00 300,00 250,00 200,00 150,00 100,00 50,00 0,00-50,00-100,00 Photline Cyoptics Relative Investment Efficiency (Post Valuation - Amount Invested) / Amount Invested (%) Infinera NeoPhotonics 2012 24 (Post Valuation - Amount invested) / Amount invested (%) General trend
Conclusions Silicon photonics is an exciting field mixing optics, CMOS, MEMS and 3D stacking technologies. All these technologies converge in Si photonics. The silicon photonics market is still modest with estimated sales of $65M in 2011; expected to grow to $215M in 2017. Today, if is low volume in terms of dies and wafers. We estimate that 500,000 chips have been shipped over the last 5 years; that represents a few thousand 200mm wafers. Data communications is the big market and dwarfs all other silicon photonics applications. Very few companies are actually shipping products to the open market: There is a clear trend to surpass 25Gb in datacom protocols and this is where Si photonics will have significant advantages. VCSELs have trouble reaching past 70 meters at 25Gb and above. 2012 25
2012 26 Thank you