Abstract
We show that non-Hermitian engineering can play a positive role in quantum systems. This is in contrast to the widely accepted notion that optical losses are a foe that must be eliminated or, at least, minimized. We take advantage of the interplay between nonlinear interactions and loss to show that spectral-loss engineering can relax phase-matching conditions, enabling generation of broadband pseudothermal states at new frequencies. This opens the door for utilizing the full potential of semiconductor materials that exhibit giant nonlinearities but lack the necessary ingredients for achieving quasi-phase matching. This in turn may pave the way for building on-chip quantum light sources.