Intel Buys New Focus Laser Unit
SANTA CLARA, Calif. (Reuters) - Intel Corp., the world's largest semiconductor manufacturer, said on Thursday it had bought a laser technology business from New Focus Inc. for $50 million in cash to beef up its optical networking business.
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Intel said the deal would help it develop cheaper and smaller optical transceivers, which are used in gear for the high-speed transmission of data across networks.
As part of the transaction, about 40 employees from San Jose, California-based New Focus(NasdaqNM:NUFO - News) will join Intel(NasdaqNM:INTC - News), which is based in Santa Clara, California, the companies said.
When combined with Intel's existing optical packaging technologies, the acquisition of the so-called tunable laser technology will enable Intel to develop and sell smaller and cheaper optical transceivers.
Intel's move is part of a broader strategy at the 34-year-old chipmaker to beef up its money-losing communications business into a powerhouse resembling its microprocessor business. According to recent figures, Intel gained market share in 2001 in the communications semiconductor business.
Tunable lasers allow manufacturers of high-end optical networking equipment to take one wavelength of light, and, using software, separate it into 80 separate wavelengths, each of which can carry 10 gigabits of data.
DWDM technology can be installed on existing fiber networks, meaning that service providers don't have to add more fixed wave-length lasers and install more fiber-optic cable along networks, Intel said.
Intel said that products incorporating the purchased technology will be available in the first half of next year. |
