  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.
