July 15, 2025. In response to industry requirements, researchers at Fraunhofer IZM, under the coordination of IMEC, have joined forces with a consortium of renowned partners from research and industry in the EU-funded PUNCH project to accelerate data networks from the ground up with a new type of optical switch. These enable 8 times faster data transmission compared to conventional setups and are used in data centers or transport networks.
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A digital meeting with an unstable image or video is something we have almost all experienced since the coronavirus pandemic. Today, data traffic continues to increase due to artificial intelligence (AI), cloud computing and the Internet of Things, and in an increasingly digital world, a stable network with reliable data transmission is not only a great advantage, but indispensable. In the PUNCH project, researchers at the Fraunhofer Institute for Reliability and Microintegration IZM are tackling precisely this task. In an international team of renowned partners from business and industry, they are processing newly developed photonic integrated circuits (PICs) in an electrical system in such a way that network transmissions will manage with minimal losses and delays in the future.
Data transmission over long distances works via optical fiber, but the systems in data centers and network nodes still convert the optical signals into electrical signals. This always results in signal delays or interference because the electrical signals require a minimum propagation time. In addition, valuable energy is lost due to the heat generated by the electrical resistors. Optical circuits offer a solution to this problem: while data processing is still carried out electronically, the PICs bring the optical signals as close as possible to the electronic chips, significantly increasing speed and integration density. Optical circuits can therefore not only transmit larger amounts of data, but are also faster and less susceptible to interference. The balance between flexibility and reliability is particularly challenging in time-critical applications, for example in vehicle communication or video transmission. This is where the PUNCH project comes in, guaranteeing both dynamic adjustments and reliable transmission times.
While other project partners, such as the University of Cambridge or IMEC, are developing the PICs, the expertise at Fraunhofer IZM enables the development of a scalable packaging solution. The researchers are solving this key challenge by combining PICs and electronically integrated circuits (EICs) in a heterogeneous fan-out wafer level package (FOWLP). Several EICs and a PIC are integrated in one package and electrically connected to each other. So far, the scientists have developed the technology for test chips and are currently integrating it into functional chips. This process offers far better performance than conventional designs thanks to its simpler structure and shorter electrical connections. In addition, wafer-level processes, which are a proven method in the semiconductor industry, improve scalability and significantly reduce costs in large-scale production. The process increases the transmission speed in the network by a factor of 8 from the current 200 Gb/s to 1.6 Tb/s, while the technologies enable even greater scaling.
The project will run until August 31, 2026, and upon completion, the research results will provide a solution for reliable communication with low latency and guaranteed quality of service, less network congestion, lower energy consumption and lower interface costs for the transmission of large amounts of data. A feasibility study and initial demonstrator modules already exist.
The PUNCH project is a collaboration between Fraunhofer IZM, Phix BV, Ericcson, AT&S, Nvidia and the University of Cambridge under the coordination of IMEC and has received 4,274,284.38 euros in funding from the European Union’s Horizon Europe research and innovation program under the agreement 101070560 “Packaging of ultra-dynamic photonic switches and transceivers (PUNCH)”.
Robert Gernhardt
Fraunhofer Institute for Reliability and Microintegration IZM
Gustav-Meyer-Allee 25
13355 Berlin
Phone +49 30 46403-299
Georg Weigelt
Marketing & PR
Fraunhofer Institute for Reliability and Microintegration IZM
Gustav-Meyer-Allee 25
13355 Berlin
Phone +49 30 46403-279
Photo: Fraunhofer IZM
