Photonic design automation is software that helps engineers design and test circuits and components that use light instead of electricity, such as optical chips, sensors, and communication links. Like computer-aided design tools that let architects prototype buildings on screen, these tools speed up development, reduce costly physical prototypes, and make complex optical systems manufacturable—factors that affect product timelines, development costs, and the potential market value of companies working with photonics.
system-level simulationtechnical
System-level simulation models how an entire product, process, or biological system behaves by combining the interactions of its individual parts rather than testing components in isolation. It matters to investors because it helps predict real-world performance, uncover design or regulatory risks, estimate development costs and timelines, and reduce the chance of costly late-stage failures—like a flight simulator that reveals issues you wouldn’t find by testing only an engine.
silicon photonicstechnical
Silicon photonics is the technology that uses tiny structures etched into silicon chips to generate, control and detect light for moving data and sensing, essentially putting optical fiber functions onto a computer chip. For investors, it matters because it can dramatically increase data speed and energy efficiency in data centers, telecom networks and advanced sensors, potentially lowering costs and enabling new products much like replacing many metal wires with faster, low-power optical highways.
co-packaged opticstechnical
Co-packaged optics are optical components—lasers and fiber interfaces—physically packaged together with a network switch’s main processing chip so light-based data links sit much closer to the chip instead of traveling over long electrical traces. For investors, this matters because it can dramatically cut power use, boost data speed and density, and lower system costs in large data centers and telecom equipment, much like moving a power outlet next to a heavy appliance to avoid long, inefficient extension cords.
photonic integrated circuitstechnical
Photonic integrated circuits are chips that use tiny optical components to generate, route and detect light instead of moving electrical signals, performing functions similar to electronic computer chips but with photons. They matter to investors because they can enable much faster data transfer and lower power use in telecommunications, data centers and sensing, creating new markets and potential cost advantages — but they also require specialized manufacturing and carry technology and supply risks.
bit error ratetechnical
Bit error rate (BER) measures the fraction of digital bits sent over a communication link that arrive corrupted or flipped by errors. Think of it like sending a long string of yes/no answers and tracking how often the answers are wrong — a lower BER means a more reliable connection, while a higher BER signals signal problems, interference or equipment issues. For investors, BER impacts product quality, customer satisfaction, operating costs and potential need for costly fixes or upgrades in firms that depend on digital transmission.
transceivertechnical
A transceiver is a single electronic device that both sends and receives communication signals, combining a transmitter and a receiver into one unit. Investors care because transceivers are core components in networking, wireless, and data-center equipment; their performance, cost and supply affect product capability, sales and margins—think of a transceiver as the two-way radio chip that lets devices talk to each other, so better or cheaper units can drive growth or cut costs for hardware makers.
thztechnical
Thz (often written THz) denotes terahertz, a unit of frequency equal to one trillion cycles per second used to describe very high-frequency electromagnetic waves between microwave and infrared. Investors watch mentions of terahertz because usable applications—like faster wireless links, new medical or security imaging, or advanced sensors—can create new markets or give a technological edge to companies, similar to how a faster highway can boost commerce.
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Enables engineers to evaluate photonic systems from device physics through full optical link performance within a connected workflow
SANTA ROSA, Calif.--(BUSINESS WIRE)--
Keysight Technologies, Inc. (NYSE: KEYS) today announced that it completed the acquisition of VPIphotonics on June 9, 2026, adding system-level simulation to its photonic design automation portfolio and enabling optical and electrical engineers to advance designs from component to complete link within a single environment.
Demand for silicon photonics and co-packaged optics continue to grow across data center and AI infrastructure markets. As complexity rises and timelines tighten, engineering teams need simulation that carries a design across every domain without the manual handoffs that slow development and introduce error.
Keysight's photonic design automation portfolio now reaches from device physics to full system behavior. RSoft handles device-level simulation for waveguides, gratings, modulators, and laser sources. Photonic Designer delivers comprehensive circuit-level design and verification for photonic integrated circuits. The acquisition of VPIphotonics now strengthens Keysight's circuit-level design capabilities and extends its photonic design automation portfolio to the system level with VPIphotonics Design Suite. This will enable Keysight to deepen and significantly enhance the design workflow by leveraging industry-leading solutions that the two companies have been shipping for years.
One example of this integrated workflow is VPI Optical Link in Keysight ADS, which enables simulation of the full transceiver path in a single analysis, from electrical to optical and back to electrical (E-O-E). Engineers can then predict how the whole link will perform, including bit error rate, without moving a design between separate electrical and optical tools. Because the workflow connects to Keysight's high-speed digital tools and test instruments, simulation aligns with bench measurements. As a result, issues surface earlier and teams require fewer prototype iterations.
Dr. André Richter, General Manager, VPIphotonics, said: “We have been supporting our customers with value-adding photonic design tools for high-demand applications for decades. Joining Keysight means we can engineer powerful, more complete workflow solutions to serve our customers better.”
Nilesh Kamdar, General Manager, Keysight EDA, said: “Photonics design complexity continues to increase for our customers, especially for those working at speeds greater than 1 THz. Having a complete suite of tools that address these challenges from device to system is crucial. We’re excited to welcome the VPIphotonics team to Keysight and help us address the critical design challenges our joint customers face.”
At Keysight (NYSE: KEYS), we inspire and empower innovators to bring world-changing technologies to life. As an S&P 500 company, we’re delivering market-leading design, emulation, and test solutions to help engineers develop and deploy faster, with less risk, throughout the entire product life cycle. We’re a global innovation partner enabling customers in communications, industrial automation, aerospace and defense, automotive, semiconductor, and general electronics markets to accelerate innovation to connect and secure the world. Learn more at Keysight Newsroom and www.keysight.com.
