NEL and Oki join forces in optical components
The alliance aims to enhance product performance, cost competitiveness, and management efficiency in the optical communication device market.
NEL is proficient in process technology for high-speed (greater than 2.5 Gbit/s) laser diodes with products, as well as wavelength multiplexing products. Oki s strengths lie in its abundant product line-up and volume production technology for 2.5-10 Gbit/s photodiodes and 2.5 Gbit/s laser diodes.
The optical components business has undergone widespread changes since the bubble burst, with companies such as Nortel, Agere, ADC and Marconi divesting or closing their components manufacturing facilities.
Most recently, Alcatel and Corning both transferred their components businesses to Avanex, a deal that was completed on July 31.
"In the optical component business area, many mergers and acquisitions have been reported, but this will be the first significant such alliance in Japan," said Hiroshi Yoshimura, director of the Photonics Business Group of NEL.
"Through the alliance, Oki will be able to further enhance its base in the optical communication device business, which can be expected to grow along with the expansion of broadband networks," said Masaharu Nishiwaki, president of the Optical Components Company at Oki Electric.
"Both Oki and NEL have strengths in this area," said Nishiwaki. "We believe that both companies technologies and skills in production and sales will prove complementary, resulting in excellent solutions that satisfy customer requirements."
As well as integrating their chip processing lines, NEL and Oki will collaborate in joint development programs for new optical communications devices, and will sell products through each other s sales channels.
NEL and Oki also say that they will study the potential expansion of the alliance, including the integration of assembly processes and offshore manufacturing.
