Data Communications

Artificial intelligence is increasing demand for data storage, compute, networking, and power. Data centers need higher bandwidth and faster links to support that growth. This page focuses on a key building block for AI data centers, optical transceivers.

Optical Transceivers in Data Communications

Updated: July 21, 2026

A data center houses servers, storage systems, routers, switches, and transceivers. It stores data and applications. It also processes, accesses, and distributes data. Early data centers relied mainly on copper wire and electrical signals. As traffic increased, copper reached its limits for bandwidth and distance. AI, 5G, virtual reality, augmented reality, autonomous vehicles, and the Internet of Things are adding more demand for high-speed links. Optical fiber solves many of those limits. It carries information as light pulses. That reduces signal loss and removes electromagnetic interference. Electronic devices still need to convert signals from electrical to optical, then back again at the receiving end. Optical transceivers perform that conversion. They connect electronic systems to fiber optic cables and help data centers move data at high speed.

Figure 1. Schematic of an example optical transceiver.

Why Optical Transceivers are used in Data Centers

Optical fiber-based networks enabled by optical transceivers support more bandwidth than copper wire. They also support longer transmission distances and lower loss.

Main Advantages of Optical Transceivers vs. Copper Wire Interconnects

  • Bandwidth: Higher data capacity than copper
  • Speed: Data travels close to the speed of light
  • Lower signal loss: Fiber supports longer links with less attenuation
  • No electromagnetic interference: Optical signals do not interfere with nearby electrical systems
  • Cost efficiency: Fewer repeaters and more capacity per channel

Common communication wavelengths include 1.3 µm and 1.55 µm, because optical glass has low absorption at those wavelengths. The system also must stay reliable, stable, repeatable, and long-lived.

Common Bandwidth Growth Strategies

Bandwidth often limits data communication networks.

Strategy Effect Tradeoff
Increase the number of optical fibers Adds more physical paths Higher cabling and connector count
Increase the number of channels Adds more wavelengths per link More lasers are needed in dense wavelength division multiplexing
Increase the data rate Moves more data per channel Requires more complex signal processing and higher-cost parts
Increase the bits per symbol Raises data per symbol Needs low noise and more advanced modulation

Optical Transceiver Manufacturing

Optical transceiver manufacturing depends on precise alignment, testing, and vibration control. Newport supports those processes with motion control, optical metrology, and isolation products

Fiber Alignment

Fiber alignment requires a transmitter, usually a laser diode chip, and a receiver, usually a photodiode, to be aligned with high precision. The goal is to maximize light through the fiber or waveguide with minimal loss.

Coupling between laser diode and fiber diagram
Figure 2. Illustration of coupling between laser diode and fiber.

Most applications use three axes. Some require up to six axes. Misalignment of only a few microns can create significant power loss. That is why fiber alignment systems use sub-micron precision and motion control in the hundreds of nanometers.

Speed also matters. Alignment must finish quickly to support throughput and control processing costs. Automated search methods help reduce the time needed to find first light and peak power.

Fiber Alignment Methods Used in Practice

  • First-light search: Finds the edge of the optical signal
  • Peak-power search: Moves to the highest coupling point
  • Axis-by-axis search: Uses sequential motion on multiple axes
  • Raster and spiral search: Helps find signal in single or multi-peak beams

Testing and Measurement

Testing and measurement verifies component performance during transceiver manufacturing. High-speed photodetectors and photoreceivers convert optical signals to electrical signals so instruments can analyze them. Common instruments include:

  • Oscilloscopes
  • Network analyzers
  • Spectrum analyzers

Newport provides testing and measurement products for optical transceivers, including custom OE converters for 100 and 200 GB/lane transceivers.

Eye diagram comparing PAM4 signal properties with PAM2-NRZ
Figure 3. Eye diagram comparing PAM4 signal properties with PAM2-NRZ.

Optical Transceiver Manufacturing FAQs

What specific algorithms are used to find first light and optimize alignment?

Common methods include axis-by-axis search, dichotomy search, raster search, and spiral search. These methods help locate first light, then refine the position to peak power. Multichannel systems may use parallel search to reduce total alignment time.

How much can automated alignment reduce alignment time?

Automated search methods can shorten fiber alignment time sharply compared with manual search. The gain comes from faster first-light capture and fewer search steps.

The MKS Advantage for Optical Transceiver Manufacturing

Newport has supported motion control for more than five decades and fiber alignment since the telecom expansion of the late 1990s. That experience informs a broad range of products used in transceiver manufacturing.

Nanometer-Scale Positioners

For fiber alignment, minimum incremental motion, or MIM, matters. MIM is the smallest increment of motion a device can deliver consistently. Peak-power search on single-mode fibers may require motion in the hundreds of nanometers.

Accuracy and repeatability matter as well. Accuracy means the stage reaches the commanded point. Repeatability means it returns to the same point after moving away.

Stability is also critical. After the target position is reached, the fiber must stay fixed long enough for epoxy dispensing and curing. Throughput matters too. Faster motion helps production, but speed can affect MIM, accuracy, and repeatability. Newport offers motorized positioners and hexapods for fiber alignment, including:

These systems support R&D, assembly, and production.

Photonic Device Search Algorithms

Efficient alignment depends on both hardware and the search algorithm. Newport motion controllers support positional search methods through firmware APIs. These functions help the system find first light and then peak power. The search method depends on the beam shape and the alignment stage.

  • First light: Finds the edge of the beam
  • Peak power: Refines the position for maximum coupling
  • Gaussian beams: Often use raster or spiral search
  • Top-hat or multiple-peak beams: Often use dichotomy or escalade methods
Axis by Axis search algorithm
Figure 4. Illustration of an Axis-by-Axis search algorithm.

Photonic Device Search Algorithms Table

Search Algorithm (PDSA) API Gaussian or Single Peak Plateau or Multiple Peaks Find First Light Find Peak Power Find Peak Power along Beam Axis (Z) Stop when Threshold Reached Max Axes
Axis by Axis X     X     6
Dichotomy X     X     6
Escalade (Cont)       X X   3
Escalade (Square)       X X X 3
Raster   X X X   X 2
Spiral (Cont)   X X X     2
Spiral (Square)     X X   X 2

MKS Products for Optical Transceiver Manufacturing

Motorized Positioners

Newport motorized positioners make up the most comprehensive offering in the industry. Many products have been designed with fiber alignment in mind, such as the MLT series and VP series linear positioners. The XM series linear positioners feature 1-nm minimum incremental motion (MIM) and 300 mm/s speed for the most complex alignments in high-volume production. Our linear positioners, rotary positioners and goniometers can be assembled together to form multi-axis fiber alignment systems. Additionally, Newport motorized actuators are used to automate manual fiber alignment systems used in R&D and lower volume production.

  • Linear and rotary positioners, goniometers, and actuators
  • Sub-micron and nanometer MIM, accuracy and repeatability
  • Can be attached together to form multi-axis fiber alignment systems
  • Configurations for high- and low-volume production and R&D

Hexapods

For an elegant and easy solution to complex, multi-axis motion in a single device, Newport hexapods offer six degrees of freedom. Some advantages that a single hexapod provides over a stacked linear/rotary positioning system include lower motion settling times, high stiffness, and no accumulation of the straightness and flatness errors of individual positioners. Moreover, a unique feature with hexapods is the ability to set two virtual centers of rotation—this enables pivoting around a separate pivot point, such as a fiber core. MIM and repeatability are sub-micron for linear motion and on the order of millidegrees for rotation. MKS also provides controllers for our hexapods, which are recommended for high-volume production.

  • Six degrees of freedom in a single device
  • Sub-micron and milli-degree MIM and repeatability
  • Two virtual centers of rotation enable pivoting around a separate pivot point, such as a fiber core
  • Recommended for high-volume production

ULTRAlign™ Precision Fiber Optic Alignment Positioners

Aligning fibers with manual positioners may be applicable for R&D and some low-volume production systems. The Newport ULTRAlign series manual positioners were specifically designed for fiber alignment. All the major structural ULTRAlign parts are constructed of stainless steel, which has excellent stability, including very high thermal stability. Thus, alignments are maintained over long periods of time. ULTRAlign components are modular, so systems with as many axes of required motion can be assembled. In addition, numerous ULTRAlign alignment accessories such as fiber holders, lens mounts and objective mounts are available for applications including fiber-to-fiber, objective lens-to-fiber, fiber-to-waveguide-to-fiber, and fiber-to-fiber with a GRIN lens in between.

  • Linear, tilt and rotation positioners
  • Fiber holders, lens mounts, objective mounts and other accessories
  • Modular components for assembly of multi-axis alignment systems
  • Stainless steel construction for ultra-stability
  • Ideal for R&D and low-volume production

High-Speed Optical Receivers and Detectors

MKS offers the broadest selection of New Focus high-speed optical receivers and detectors that feature the lowest noise and cleanest response. For power levels on the order of hundreds of mW, non-amplified optical detectors are recommended. And for even lower optical power levels, New Focus fiber-optic receivers contain a low-noise, linear, high bandwidth amplifier after the photodiode and offer bandwidths up to 38 GHz, making them ideal for signals on the order of hundreds of nW. To meet processing throughput requirements, our high-speed optical receivers and detectors can deliver rise times on the order of picoseconds. All New Focus standard catalog optical receivers and detectors are plug-and-play and easy to use, and MKS can also provide custom and OEM modules for specific requirements including frequency response, gain and noise.

  • Fiber-optic receivers, frequency-domain detectors and time-domain detectors
  • Lowest noise and cleanest response, even at low optical power levels
  • Picosecond-scale rise-times
  • Plug-and-play standard products and custom OEM capabilities

Photodiode Power Sensors

To measure optical power by converting light into electrical current, which can then be measured by a power meter, MKS provides a full array of Newport fiber-optic photodiode power sensors. In particular, our 818 series fiber-optic photodiode power sensors are capable of measuring power as low as 20 pW for 800-1,650 or 400-1,100 nm wavelengths, making them advantageous for low power first light scans that look for where light starts to transmit. Featuring NIST-traceable sensor calibration and the lowest calibration uncertainty in the industry, our 818 series can be used for R&D and production. Fast rise times of a few microseconds help meet throughput objectives, and exchangeable fiber adapters extend these sensors’ compatibility.

  • NIST-traceable calibration, lowest uncertainty in the industry
  • 20 pW minimum measurable power @ 800-1,650 or 400-1,100 nm
  • Rise-times of a few microseconds
  • Exchangeable fiber adapters

Optical Power Meters

When a photodiode power sensor converts light into electrical current, it must be connected to a power meter for measurement and analysis. MKS offers Newport power meters that are compatible with our sensors, including the 818 series sensors. The is one of the most advanced optical power and energy meters in the market, featuring sub-pW noise levels, fast sampling rate of up to 10 kHz, thorough selection of measurement and analytical functions, and an analog output to provide feedback to a motion controller. For versatile, portable measurements such as transmission checks in the field, our handheld meter provides a variety of measurements and display modes in an ergonomic design with a user-friendly interface. Another option is to use a PC as a laser measurement station—our 844 virtual power meter connects to a PC via USB and comes with application software that includes advanced measurement processing, data logging and extensive graphical displays.

  • Compatible with Newport photodiode power sensors, including 818 series
  • Advanced full-functionality meter for production and R&D
  • Handheld meter for field-checks, R&D and manual fiber alignments
  • Virtual meter with application software to enable PC as a laser measurement station

Gradient Index (GRIN) Micro Lenses

If the interface to a detector is bare fiber, a GRIN lens is the most common optical element used to collimate or focus a laser for fiber coupling. GRIN lenses have a radially varying index of refraction, causing an optical ray to follow a sinusoidal propagation path through the lens. Many Newport plano-plano (flat) GRIN lenses are available from MKS in various sizes, pitch (which defines how an optical ray propagates through the lens) and anti-reflective coatings. MKS also provides plenty of ways to mount a GRIN lens, including ULTRAlign accessories specially designed to hold GRIN lenses. (Note that depending on focal requirements, a Newport objective lens may be a better alternative to a GRIN lens.)

  • 1- to 2-mm diameters, >2.5- to <6-mm lengths
  • 0.23, 0.25 and 0.29 GRIN pitches
  • AR coatings for 630, 830, 1,300 and 1,560 nm wavelengths
  • Mounting accessories as part of ULTRAlign system

Workstations and Optical Tables (Vibration Control)

A fiber alignment system has to be placed somewhere, but not just anywhere. A critical factor with fiber alignment is vibration control, as even the slightest disturbance can cause alignment errors. MKS has set the industry standard for vibration control for many decades. Our Newport breadboards, workstations and optical tables are available undamped or with various levels of precision damping. For the ultimate in damping performance, our SmartTable® optical tables were the first active damped tables available in the market. When vibration isolation is required, MKS offers Newport pneumatic, elastomeric and mechanical isolators. Hundreds of standard configurations are available, and MKS can also deliver custom solutions.

  • Breadboards, workstations, optical tables and isolators
  • Passive damping and active SmartTable damping
  • Pneumatic, elastomeric and mechanical isolators
  • Hundreds of standard configurations and custom design capabilities

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