The modular and growable photonic ATM switch architecture described in this paper uses both time-division and wavelength-division multiplexing technologies, so the switch capacity can be expanded in both the time and frequency domains. It uses a new implementation of output buffering scheme that overcomes the bottleneck in receiving and storing concurrent ultra fast optical cells. The capacity in one stage of a switch with this architecture can be increased from 32 gigabits per second to several terabits per second in a modular fashion. The proposed switch structure with output channel grouping can greatly reduce the amount of hardware and still guarantee the cell sequence.