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Technical Insight

Optoelectronic ASICs surge forecasted (Market News)

Application-specific ICs that control the optoelectronic layer in fiber-optic networks are a bright spot in the current industry gloom. According to a report from ElectroniCast, the global consumption of optoelectronic ASICs will climb at over 44% per year, from $1.32 billion in 2000 to $8.3 billion in 2005. Amplifier and driver ASICs will continue as volume leaders, with a combined value share of 71% in 2000, but will decline to 46% by 2005. These components will be replaced by integrated multifunction ASICs, which include parallel links containing multiple channel transmit/receive units. This new category will reach 14% over the study period. "This explosive growth will be driven by a very rapid expansion of transceivers and transponders in metro/access and intra-equipment links," said ElectroniCast founder and chairman Jeff Montgomery. "Plus there will be a significant shift to higher-priced ASICs for 10 and 40 Gbit/s systems, and to increased functionality ASICs used in 256 256 parallel links." Speed and integration favor InP Silicon s market share (including SiGe) is expected to drop from 86% to 68% by 2005, with increasing uptake of GaAs and InP ASICs in laser drivers, TIAs and limiting amplifier functions. The leading manufacturer of GaAs optoelectronic ASICs last year was Vitesse, with around one-third of the market. InP will become much more significant as more 40 Gbit/s circuits are deployed. In addition, InP lends itself to integration with other optoelectronic components such as PIN detectors and TIA circuits. "For the major vendors, optoelectronic ASICs represent at best only 10% of their business volume," Montgomery continued. "I would expect some of these players to put more emphasis on this sector in future." "The Optoelectronic ASICs Forecast" is available from ElectroniCast for further details see www.electronicast.com.
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