What's the difference in internal construction between a photocoupler and a digital isolator?

A photocoupler is a device in which a LED and a light-detector element are built in the same package, electrically insulated by resin, where signals are switched ON/OFF by the LED. Meanwhile, a digital isolator is a device in which a modulation chip with insulating film and a demodulation chip are contained in the same package, and signals are transmitted between the chips by a magnetic or electric field.

Construction of photocoupler‘s isolation
Construction of photocoupler‘s isolation
Construction of digital isolator’s isolation
Construction of digital isolator’s isolation

For Standard Digital Isolator products, please refer to the following links.

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