Matsushita has successfully developed an 850-nm wavelength VCSEL (Vertical Cavity Surface Emitting Laser), capable of high speed 12.5-Gbps modulation at an operating current of 8-mA. The laser will be used for low-cost optical communication such as plastic fiber communication and spatial light transmission.

A speed of 12.5Gbps can finish transmitting the data of two CD's within one second. Matsushita aims to begin shipping two types of surface emitting lasers (2.5-Gbps and 12.5-Gbps) in the first half of 2006.