NTT was tipped to partner with Intel and SK Hynix to develop and mass-produce next-generation chips using optical technology to reduce power consumption, with the Japanese government contributing about JPY45 billion ($305.2 million) to the initiative, The Japan Times reported.

Minister of Economy, Trade and Industry Ken Saito told a news conference the project would be a future game changer by enabling faster communications with lower power consumption, the newspaper wrote.  

The tie-up targets reducing power usage by 30 per cent to 40 per cent.

Intel is a supplier of semiconductors for computing systems, while SK Hynix is one of the largest makers of memory chips.

NTT has pushed its Innovative Optical and Wireless Network (IOWN) initiative since 2021, with the aim of developing a high-capacity communication platform using an all-photonics network comprising silicon, edge computing and wireless distributed computing.

The telecoms giant is a leader in developing transistors using light and is reportedly aiming to deploy the next-generation networks by 2030.