Fiberoptics Industry Report
Regulators okay modified Uniphase, E-TEK Dynamics merger
US regulators have given JDS Uniphase Corp. (San Jose, CA) the okay to proceed with its purchase of E-TEK Dynamics Inc. (San Jose, CA), provided that the two companies drop rights to purchase a key component. According to the US Department of Justice, the two companies have agreed to cancel certain contracts for thin-film filters that allow packing more information into optical fibers—contracts that would have given them control of roughly 80% of the world's output of thin-film filters. Originally valued at some $15 billion when it was first announced in January, the all-stock deal is now worth $18.7 billion. As part of the agreement, JDS will exchange 2.2 shares of its stock for each E-TEK share after adjusting for March's two-for-one stock split.
Agilent expands fiberoptics manufacturing capacity
Over a two-year period, Agilent Technologies Inc. (Palo Alto, CA)—which has just delivered the first small-form-factor fiberoptic transceiver for 155-Mbit/s SONET/SDH (OC-3) long-reach applications—plans to quadruple worldwide manufacturing capacity through expansions at each of its fiberoptics manufacturing sites, including both front- and back-end processing operations. Investments in capital equipment and plant expansions are expected to total more than $175 million. In line with this anticipated growth, the firm has already placed a multimillion-dollar order for additional multiwafer reactors for laser-device epitaxy.
Samsung and Corning boost Korean fiberoptics output
Corning Inc. (Corning, NY) and Korean manufacturer Samsung Electronics have approved the first phase of a $110 million expansion at Samsung Corning Micro-Optics, their newly established equity venture company in Suwon, South Korea. The expansion will quadruple production of dense wavelength-division-multiplexing (DWDM) modules. "The worldwide market for high-quality, low-cost optical modules is strong and growing quarter by quarter," says Gerald Fine, Corning vice president and general manager of photonics technologies. "This expansion will allow us to grow our DWDM business and, at the same time, to create a source of critical components for Corning's burgeoning erbium-doped fiber-amplifier module business."
Lucent buys Herrmann Technology
Lucent Technologies has purchased Herrmann Technology (Dallas, TX) for $438 million in stock. The company manufactures filters based on thin films that prevent interference between different wavelength channels in DWDM networks and currently employs around 65 people at its Dallas headquarters. Company founder and president Bill Herrmann will become the director of optical thin-film manufacturing and advanced process development for the optoelectronics division in Lucent's microelectronics group.
Nortel Networks acquires Photonic Technologies
Nortel Networks (Toronto, Canada) has acquired optical-components manufacturer Photonic Technologies (Sydney, Australia) in a deal estimated to approach $35.5 million. Nortel already owned approximately one-third of the privately held company, which develops circulators and dynamic gain-flattening filters for high-speed optical networks and DWDM networks.
Also in the news . . .
Siecor (Hickory, NC) has become Corning Cable Systems, as a result of Corning's recent acquisition of both its and Siemens' worldwide cable and hardware operations. . . . Schweiter Technologies AG has signed an agreement to acquire RTC Systems Ltd., a UK-based manufacturer of optical telecommunications and thin-film coating systems. The company plans to merge the firm with Satis Vacuum (London, England), a volume producer and supplier of thin-film coating equipment.
Paula Noaker Powell
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