OCP snaps up Taiwan's Gigacomm for $20m cash
Optical Communication Products (OCP) is to acquire Taiwan-based laser, detector and module vendor Gigacomm for $20 million in cash.
The Woodland Hills, CA, firm, which closed its dilute-nitride VCSEL operation earlier this year, hopes to fulfill its intention to move into the emerging market for fiber-to-the-home (FTTH) equipment through the deal (see related story).
Gigacomm is said to be the leading supplier of FTTH modules in Japan, currently the world's largest market for such gear. NTT has a vigorous plan for deployment of the technology and a recent market report from Heavy Reading predicted that by 2011, 86 million households will be hooked up with an FTTH link globally.
The Taiwanese company, which is located in the Hsinchu Science-based Industrial Park, also sells III-V optical components including VCSELs, edge-emitting lasers and photodiodes to some of Japan's leading communications equipment vendors, including Mitsubishi Electric.
OCP's CEO Muoi Van Tran said, "The acquisition gives us increased capacity through [Gigacomm's] integrated manufacturing facility, an important second - and competitive - source of lasers, and a talented pool of engineers and management."
Mitsubishi Electric's purchasing department says that it has bought over a million modules from Gigacomm over the past year.
With current investors including Epistar and Taiwan's Industrial Technology Research Institute, Gigacomm will become a wholly-owned subsidiary of OCP's once the deal has been finalized. Gigacomm CEO Jacob Tarn will remain in charge of the operation.