Intel to acquire three optical chip makers

Intel to acquire three optical chip makers
SANTA CLARA, Calif. -- Despite a downturn in the communications market, Intel Corp. today announced it has separately acquired three optical networking component makers--Cognet Inc., nSerial Corp., and LightLogic Inc. Terms of the deals were not disclosed.

The acquisitions will extend Intel's product portfolio to include a new breed of components that promises to lower the cost and power of optical networking equipment.

In doing so, however, Intel will compete in these markets against the likes of Agere, AMCC, Broadcom, Conexant, PMC-Sierra, Vitesse, and others.

With the three acquisitions, Intel will move into some new and emerging networking chip markets, such as 10 Gigabit Ethernet and others.

Cognet of Los Angeles makes CMOS-based chips that process electrical signals in modules for 10 Gigabit Ethernet networks. Based in Santa Clara, nSerial is developing chips that converts those electrical signals into the protocols used by networking devices.

LightLogic is a Newark, Calif.-based supplier of optical transponders. These transponders integrate high-speed optics and electronic components into a single device.

"The optical networking equipment industry is now segmenting in a way that requires unique solutions for different market segments," said Mike Ricci, vice president and general manager of Intel's Optical Products Group.

"Our communications equipment customers are asking us to integrate high-speed electronic and photonic components into cost effective building blocks that help them reduce time-to-market," he said.

Intel's move to buy the companies comes at a time when the communications chip and equipment markets are in the tank.

"Despite the current slowdown in sales of networking and communications gear, we believe that the investments we're making to add key opto-electronic capabilities, together with the company's core strengths in semiconductor technology, will enable Intel to lead in this industry when the inevitable recovery occurs," Ricci said.

The acquisitions announced today are the latest actions taken by Intel to extend its opto-electronic capabilities. Last year, it acquired Giga A/S, a Danish supplier of chips for 10-gigabits-per-second applications.

Intel is now developing its next generation of opto-electronic components, which will support data rates of 40-gigabits-per-second.

In February, Intel announced an investment in Communicant Semiconductor Technologies AG, based in Frankfurt, Germany.Communicant is building a manufacturing facility that will build semiconductor components based on a new silicon-germanium-carbon process technology.