Oki and Fujikura Announce the Establishment of Sigma-Links,Inc., a Joint Venture Making High Speed Small Form Factor and Next Generation Optical Transceivers
Oki Electric Industry Co., Ltd. (hereinafter referred to as Oki,
President: Katsumasa Shinozuka) and Fujikura Ltd. (hereinafter referred to as
Fujikura, President: Akira Tsujikawa) will establish SIGMA-LINKS, Inc ., a joint
venture for the development, manufacture, and sales of high-speed Small Form Factor
and Next Generation optical transceivers with transmission speeds of 1 gigabit
per second (Gbps) and higher on April 1, 2001. The new company is targeting the
telecom and datacom markets.
Optical transceivers convert electrical signals into optical signals and vice
versa for data transmission through single-mode fiber (SMF) or multi-mode fiber
(MMF) between communications equipment, network equipment, computers and storage
devices.
Today, data transmission traffic is surging as a result of the rapid growth
in the Internet as well as Intranets. This trend has led to the merging of telecom
and datacom markets which have been growing at accelerated rates.
In response to the surge in traffic, there is an increasing demand for higher
bandwidth systems that use Small Form Factor optical transceivers (half the size
of conventional ones) that can contribute to higher port density and Next Generation
optical transceivers that are capable of higher transmission data rates at 10
Gbps and higher.
This high-speed technology is required for carrying data over storage area networks
(SANs), local area networks (LANs), and synchronous optical networks (SONETs).
It is estimated that in 2002 or 2003, annual demand for these optical transceivers
is expected to exceed 10 million units, with sales surpassing $2 billion.
Responding to these market needs, Oki and Fujikura are establishing a new
company with the aim of combining reciprocal technologies, accelerating the development
of Small Form Factor and Next Generation high-speed optical transceivers, and
in turn expanding the business.
Scope of new company and future business expansion
Broadly speaking, there are two classes of optical transceivers. One uses short
wavelength (850nm) optical sources for links of distances up to 500 meters at
1 Gbps. The other uses long wavelength (1310nm) optical sources for links of distances
over 500 meters at 1Gbps . In these areas, Oki has expertise in semiconductor
lasers, high-speed ICs, and long-wavelength optical links. Fujikura has expertise
in optical fiber, optical connectors, and short-wavelength optical links.
In March 2000, Oki and Fujikura agreed to jointly develop, manufacture and
mutually supply each other next-generation high-speed Small Form Factor optical
transceivers. Based on this agreement, the two companies have commercialized optical
transceivers for Gigabit Ethernet and Fiber Channel with transmission speeds of
1Gbp and 2 Gbps, as well as 2.5Gbps SONETs. The companies have started shipping
samples of 12 different optical transceivers, including six Small Form Factor
short-wave versions and six Small Form Factor long-wave versions. They agreed
to establish the new company after concluding that forging mutual cooperation
is the best way to enhance efficiency, product planning, design technologies,
and sales promotion for achieving comprehensive growth in the field.
The new company will engage in all product areas for Small Form Factor and
Next Generation high-speed transceivers. It expects to generate sales of $200
million in fiscal 2003, and will work to further expand business and capture a
20% market share worldwide going forward.
Oki will provide optical device technology such as laser diodes and photo
detectors as well as high speed GaAs ICs to the new company as well as continue
development of high-value-added optical transceivers applicable for dense wave
division multiplexing (DWDM) and high-speed optical network systems with 40Gbps
transmission speeds.
Fujikura will provide optical fiber and optical connector technology to the
new company and entrust the manufacture of products developed by the new company
to Tohoku Fujikura and another subsidiary company in Thailand. Moreover, Fujikura
aims to reduce costs and expand business in optical convertors and other product
areas using Small Form Factor and Next Generation optical transceivers from the
new company.
Oki and Fujikura will step up cooperation with the aim of expanding business
for the new company.
Scope of new company and future business expansion
| Company name: |
SIGMA-LINKS, Inc . |
| Line of business: |
The development, manufacture, and sales of Small Form Factor and Next Generation
high-speed optical transceivers |
| Head Office: |
1-550 Higashi Asakawa-cho, Hachioji-shi, Tokyo |
| Date of establishment: |
April 1, 2001 |
| Commencement of operations: |
June 2001 |
| Paid-in capital: |
300 million yen (Shareholdings: Oki Electric Industry Co., Ltd., 50%; Fujikura
Ltd., 50%) |
| President: |
Masaru Uesugi (Oki Electric Industry Co., Ltd.) |
| Employees: |
20 (at the time of establishment) |
About Oki Electric Industry Co., Ltd.
Founded more than a century ago in 1881, Oki Electric Industry Co., Ltd. is Japan's
first telecommunications manufacturer headquartered in Tokyo, Japan. With more
than 21,000 employees worldwide, Oki Electric provides customers with top-notch
products and technologies for telecommunication systems, information systems and
electronic devices.
About Fujikura Ltd.
Fujikura Ltd. (Tokyo, Japan) is one of Japan's foremost manufactures of electric
wire and cables. Since its establishment in 1885, the Company has introduced technologies
and products that meet the highest global standards. Our extensive product lineup
and expertise are the culmination of more than a century in business, combined
with a positive, energetic corporate attitude. In addition to electric wire and
cables, today the Company also offers a growing range of products for the information
and communications industries, notably optical fibers and fiber-optic components,
and such electronic materials and components as electronic wires, flexible printed
circuits and so on. Visit Fujikura's web site at http://www.fujikura.co.jp/
Press Contact:
Oki Electric Industry Co., Ltd.
Public Relations Division
Phone: +81-3-3580-8950 |
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