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Journal Les Affaires article on LUMM - Sat. Aug. 14/99
My translation!
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A small manufacturer in Dorval discovers a revolutionary chip
The optical chip from Lumenon is cheaper and 64 times more powerful
Guy Paquin
The electronic chips which govern the functions in our cars and everyday life are on the edge of extinction.The future is the optical chip which uses ordinary light in place of electricity to accomplish these tasks.
Now the most spectacular application of optical chips today is provided by a small company from Dorval, Lumenon Innovative Lightwave Technology (NASDAQ, LUMM, $2US) Lumenon has created a chip which mutiplies by 64 times the carrying capacity of optical fibers used for telephone and cable distribution.
Apparatus already exists which fills this function. The company JDS Uniphase (NASDAQ, JDSU, $83.50US)makes it. These are the optical multiplexers. They are housed in a square box containing lasers, prisms, glass cubes, all very expensive hardware. For each mile of optical fiber where there is needed an increase in capacity one must buy a multiplexer for $31,000US.
The Lumenon chip will surpass these. Dr. Iraj Najafi one of the founders of Lumenon refuses to divulge the price of his chips but he clearly states that the price will be a fraction of present day multiplexers. How will he do it?
"He has invented a totally automatic process which makes printed optical circuits just like electronic chips are made" explained Jacek Chrostowsky, optical networks director for Cisco Systems (NASDAQ, CSCO, $61US).
"The key is in the word automatic, because the usual assembly of multiplexers is by hand and requires lots of manual labor. When the demand rises, JDS must take on about a thousand supplementary workers to meet the demand.
"The Lumenon process didn't exist to run the machines quicker and acquire more primary material".
Is it necessary to say that Cisco, the king of the routers for the Internet networks is interested particularly in Lumenon and moreover has a seat on the technical committee?
Silicon and sol-gel glass
To make an optical chip take a silicon wafer. Dip it in a bath of sol-gel glass, which is just between solid and liquid.
Before the glass solidifies ultraviolet light makes a pattern of fine lines similar to the circuit printed on an electronic chip. With the help of a special "detergent" all the sol-gel glass is removed, except that pattern freshly printed. That's all.
The passage of light is through the pattern of solidified glass. By modifying this pattern it is possible to create as complex a pattern as there is for electronic circuits and make what you want: a microprocessor, router, memory storage, switch or multiplexer.
The first chips from Lumenon will be on the market at the beginning of the year 2000 and the buyers will be the giants of the industry such as Nortel Networks, Lucent Technologies and Cisco.
"When we established the researh parameters, we did so as to be able to make hundreds of thousands of chips as required", assured Mr. Najafi.
At present, the connector giant Molex (NASDAQ MOLX, $34.50US), from Chicago is testing the chips in the real world and helping the small factory in Dorval get established.
The next step in 6 months to a year will be to construct a big plant to satisfy the demand woldwide.
"Our production unit actually is only able to satisfy from 3 to 5% of the total demand" confirmed Stephen Litwin , responsible for investor relations at Lumenon.
The company will have to raise funds to build a factory. It is possible that they may access public markets for funds. Lumenon already has negotiated with NASDAQ (Bulletin Board). The principal shareholders are the two founders, Mark Andrews and Iraj Najafi who hold 8M shares.
The others are The University of McGill and l'Ecole Polytechnique (1.5 M in total), Molex (3M), private investors and risk capitalists (3M). The rest (6M) is in the hands of the public
Regards,
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