TOKYO -- Japanese telecom carrier NTT will develop technologies to mass-produce next-generation semiconductors that drastically reduce power consumption by utilizing optical technology, in partnership with U.S. chipmaker Intel and other semiconductor companies, Nikkei has learned.

SK Hynix of South Korea is also expected to participate in the initiative, which eyes countering China by cooperating in research and development of cutting-edge strategic technologies. The Japanese government will provide about 45 billion yen ($305 million) in support.

Optical technology can replace electronic processing using light. If integrated in semiconductors, it can significantly reduce power consumption.

The technology is considered to be a game changer in the industry as the race to miniaturize semiconductors approaches physical limitations. The Ministry of Economy, Trade and Industry sees it as a technology Japan can lead the world in as part of its strategy for reviving the nation's semiconductor industry.

Demand is expected to increase with the spread of artificial intelligence, which involves the processing of huge amounts of data.

Currently, information received through optical communications is converted into electrical signals using a dedicated device, which is then delivered to a server in a data center. Semiconductors inside the server exchange electrical signals to process calculations and memory.

By utilizing optical technology, the electrical signals taking on the processing occurring inside each chip as well as the substrate on which semiconductors are integrated will be replaced with optical signals.

Processing using optical signals is faster than that using electrical signals. Keeping pace with various semiconductor manufacturers is key to realizing the technology. NTT hopes to coordinate necessary technologies by cooperating with Intel, which makes chips for computer systems, and SK Hynix, which produces memory chips.

By fiscal 2027, the companies aim to establish production technology for devices that incorporate light into semiconductors and memory technology capable of storing data processed at terabit-class speeds. Intel will advise on the development of production technology. The goal is to reduce power consumption by 30-40% compared to conventional products.

NTT leads globally in integrating optical technology with electronics. The company was the first in the world to successfully develop basic technology for transistor circuits using light. The result was published in 2019 in the online edition of the British scientific journal Nature Photonics. The company launched the Innovative Optical and Wireless Network (IOWN) based on this technology.

SHIHO MIYAJIMA, Nikkei staff writer