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New Focus and Intel clinch laser deal

Intel has bought New Focus's tunable laser technology for $50 million
New Focus has sold its tunable laser technology to Intel for $50 million. As part of the deal, Intel has taken on 40 New Focus employees at its Newark-based communications group, and has agreed to license the technology back to New Focus for test and measurement applications.

"This deal combines New Focus s tunable laser technology with the optical packaging technology that we bought from LightLogic last year," said Gordon Hunter, vice president of the Intel Communications Group. "This positions us as a leader in DWDM [applications] for the optical network market and means we can accelerate the development and adoption of small, low-cost tunable lasers for many applications."

New Focus does not fabricate its own lasers, but adds laser chips from other sources to its external cavity design to make 20 mW lasers that are tunable across the entire C-band. This latest move follows the sale of its passive optical component line to Finisar in April. At the time the deal was said to allow New Focus to concentrate on active components including tunable lasers and RF amplifiers.

"This transaction will also benefit New Focus by providing us with advanced tunable laser transponders from Intel," said chief technology officer, Tim Day. "We will combine this with our products to create more advanced test and measurement solution for our customers."

• In recent years, Intel s venture capital arm has funded a range of optoelectronic start-ups including VSK Photonics, T-Networks and Nova Crystals. The company has also bought low power CMOS circuit makers Cognet Microsystems and nSeriel, as well as LightLogic, which has an automated process for manufacturing and packaging optical transponders.

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