eezie:
You got it. Basically, passives do not need external electrical power. They work with fibers, waveguides, mirrors, filters, etc. Actives have a laser, modulator, amplifier, or MEMs switch in them.
In simple terms, ETEK made the market for passives about ten years ago. JDSU bought them, then the same guys who made cash in that deal started Avanex and basically copied them. There have always been low IP barriers in passives, because the raw materials are fibers and waveguides. There are also low capital barriers: the processes are mainly done by hand.
So that's why companies have gone to China for passives: cheap labor. The problem is, any IP you bring or develop over there quickly evaporates. Chinese VCs lure your engineers away, and they in turn lure your workers away. There are no effective laws or courts to protect your IP: none, zero, nadda, zip.
Even if you are a huge company like Nike, you get ripped off. You are stuck patrolling the worlds ports for knockoffs. You might have a chance in an established country's courts. But for every one you catch, there are ten more you miss. The Chinese internal market is theirs. Fugedaboutit.
-Own |
