Prominent chipmaker Intel is currently working on a new type of technology that will help speed up the data transfer between silicon chips. This new technology has the potential of accelerating data transfers on cloud data center while cutting down on energy usage at the same time.
While Intel's new technology is poised to be a breakthrough in semiconductor technology, the chipmaker confirmed that it would not be ready for commercial applications until the next three to five years.
Intel's new semiconductor technology embeds small lasers and fiber optic connections into a microchip. This allows data to be directly transmitted into another microchip. Many analysts agree that technology is slowly reaching the limit of how many transistors can be embedded on a single chip, according to Investopedia. In this regard, scientists are working on a new way to transmit data between chips at a faster speed.
According to Fortune, Susquehanna Financial analyst Christopher Rolland wrote, "This technology is nothing short of miraculous and we view it as a potential game changer for Intel and the industry."
Intel is in need of a breakthrough to maintain its lead in the currently declining PC market. Although the demand for data center components is rising, other markets like mobile devices, desktop components, and microchips are declining at a rapid pace. Not counting Intel's acquisition of minor microchip manufacturer Altera in 2015, the company's revenue only grew by three percent in the first nine months of 2016.
On the other hand, tech and market analysts agree that the new technology dubbed as silicon photonics is just the breakthrough Intel needs to boost its data center business. With major tech companies struggling to build their data center to capitalize on the booming big data industry, a very powerful chip could save not only Intel's business but the whole microchip manufacturing market as well.