http://money.cnn.com/news/newsfeeds/articles/marketwire/0336623.htm
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The breakthrough -- known in the industry as a silicon Mach-Zehnder electro-optic modulator -- performs the function of converting electrical signals into pulses of light. The IBM modulator is 100 to 1,000 times smaller in size compared to previously demonstrated modulators of its kind, paving the way for many such devices and eventually complete optical routing networks to be integrated onto a single chip. This could significantly reduce cost, energy and heat while increasing communications bandwidth between the cores more than a hundred times over wired chips.