Izmo Microsystems, IIT Madras join forces to drive innovation in photonic chip packaging

In a major step forward for India‘s semiconductor industry, izmo Microsystems, a division of izmo Ltd., has partnered with the Indian Institute of Technology Madras (IIT Madras) to pioneer advancements in photonic chip packaging solutions. This collaboration is expected to accelerate research in silicon photonics technology, a transformative field that is reshaping high-speed computing, telecommunications, and quantum computing.

The partnership is anchored at the Centre for Programmable Photonic Integrated Circuits and Systems (CPPICS), an innovation hub housed within the Department of Electrical Engineering at IIT Madras. Established on January 1, 2021, CPPICS was founded with seed funding of ₹26.65 crore from the Ministry of Electronics and Information Technology (MeitY), Government of India, complemented by an in-kind contribution of ₹3.25 crore from izmo Microsystems Bengaluru.

For over a decade, Professor Bijoy Krishna Das, a leading researcher in silicon photonics, has been at the helm of efforts to develop cutting-edge photonic computing and communication technologies. With izmo Microsystems’ System-in-Package solutions, the research at CPPICS is now set to scale to chip-scale microwave and quantum photonics applications, laying the groundwork for next-generation computing architectures.

Why Is Silicon Photonics Critical for the Future of Computing?

The explosive growth of data centers, cloud computing, and artificial intelligence has created an insatiable demand for high-speed data transmission and energy-efficient computing solutions. Silicon photonics technology provides an innovative answer to these challenges, enabling the integration of optical components on a silicon chip, vastly improving speed, efficiency, and scalability compared to traditional copper interconnects.

As the global economy shifts toward AI-driven computing, neuromorphic architectures, and quantum systems, the need for photonic chip packaging solutions is becoming increasingly apparent. These advancements are crucial in industries ranging from high-performance computing and telecommunications to biomedical imaging and sensing.

What Does This Collaboration Mean for the Silicon Photonics Industry?

By collaborating with IIT Madras, izmo Microsystems is positioning itself as a leader in programmable photonic processors—a field that is expected to see rapid adoption in the coming years. The company is leveraging its expertise in System-in-Package (SiP) solutions to develop state-of-the-art photonic chip packaging, covering design, fabrication, and testing. This initiative aligns with India’s ambition to become a global semiconductor hub, a vision supported by government-backed initiatives promoting research and domestic manufacturing in silicon photonics technology.

Dinanath Soni, Head of izmo Microsystems Division of izmo Ltd., emphasized that the development of the programmable photonic chip represents a significant step forward for the industry. He reaffirmed the company’s commitment to delivering high-performance SiP packaging solutions that enable scalable, energy-efficient computing for future applications.

How Is the Global Silicon Photonics Market Expanding?

The global silicon photonics market is witnessing unprecedented growth, with industry forecasts projecting a market size of $4.6 billion by 2027. The surge is largely driven by the increasing need for high-speed, low-latency optical interconnects in data centers, where conventional electronic interconnects are struggling to keep up with bandwidth demands.

Beyond traditional applications in telecommunications and data centers, silicon photonics technology is now gaining traction in AI acceleration, quantum computing, and neuromorphic systems. As leading semiconductor firms ramp up their investments in photonic computing and communication, the Asia-Pacific region—particularly India and China—is emerging as a key hub for silicon photonics manufacturing. This shift is expected to complement the dominance of North American and European markets, accelerating global adoption of programmable photonic processors.

What Are the Key Applications of Silicon Photonics?

The influence of silicon photonics technology extends beyond just computing and telecommunications. Its broad range of applications is shaping industries that rely on high-speed, energy-efficient optical processing.

One of the most critical applications is in high-performance computing and data centers, where photonic chips enable ultra-fast optical interconnects that reduce latency while improving power efficiency. Similarly, the adoption of silicon photonics in artificial intelligence and machine learning is revolutionizing deep learning by enabling optical computing architectures that dramatically enhance processing speeds.

Quantum computing is another area where photonic chip packaging solutions are proving indispensable. The integration of photon-based quantum processors is advancing secure data transmission and quantum cryptography, paving the way for next-generation computing security frameworks.

In biomedical imaging and sensing, silicon photonics technology is enabling high-resolution, non-invasive optical diagnostics, improving early detection of diseases while advancing precision medicine. These developments underscore the transformative impact that photonic computing and communication will have across multiple sectors.

How Is izmo Ltd. Performing in the Stock Market?

Following the announcement of the IIT Madras collaboration, izmo Ltd. (NSE: IZMO) has seen a 1.67% increase in stock value, currently trading at ₹285.90 per share as of March 25, 2025. Despite volatility over the past year, with a 52-week high of ₹649.45 and a low of ₹229.70, the stock maintains strong financial fundamentals.

With a price-to-earnings (P/E) ratio of 8.32, izmo Ltd. appears to be undervalued relative to industry competitors. Additionally, a return on equity (ROE) of 15.08% suggests strong profitability, while a low debt-to-equity ratio of 0.01 highlights the company’s solid financial position with minimal debt exposure.

Given izmo Ltd.’s strategic expansion into silicon photonics technology, investors may consider a ‘Hold’ position, closely monitoring how the partnership with IIT Madras influences the company’s long-term growth. With the semiconductor sector witnessing heightened investor interest, izmo Ltd.’s role in programmable photonic processors could be a key driver of future stock performance.

Why Is This Partnership a Game-Changer for Photonic Chip Packaging?

The collaboration between izmo Microsystems and IIT Madras signals a major step forward in silicon photonics innovation. By advancing photonic chip packaging solutions, the partnership is not only bolstering India’s standing in the global semiconductor landscape but also enabling next-generation computing and communication technologies.

With growing industry adoption of silicon photonics technology, izmo Microsystems’ expertise in high-precision photonic chip packaging is set to play a crucial role in shaping the future of AI acceleration, quantum computing, and optical communication. As the demand for scalable, energy-efficient photonic processors continues to rise, this partnership stands as a testament to India’s growing prominence in semiconductor research and innovation.