VI Systems GmbH has received nearly €2 million in the form of a grant from the European Commission's Horizon 2020 program to continue development of its vertical-cavity surface-emitting laser (VCSEL) technology for communications. Specifically, the company hopes to increase the bandwidth of optical interconnects for datacenters, supercomputers and consumer products, such as next-generation displays and mobile devices. Current VCSEL and photodetector technology is suited for energy-efficient interconnects at distances up to few hundred meters at data rates beyond 40 Gb/s. VI Systems plans to commercialize technology expanding this bandwidth to 50 Gb/s per channel to target future markets, such as 400-Gb/s Ethernet transceivers and customized products such as active optical cables and midboard assemblies. The funding will enable technology development, as well as preproduction activities, such as demonstration, testing, piloting, scaling up and miniaturization, the company said. Administered under phase 2 of the Horizon 2020 SME Instrument scheme, the grant provides €1,970,990 (about $2.2M) through 2017. The scheme aims to accelerate the uptake of nanotechnologies, advanced materials, or advanced manufacturing and processing technologies by small and medium enterprises. For more information, visit ec.europa.eu/easme/en/horizons-2020-sme-instrument.