Acquisition of Cognet and nSerial and Pending Acquisition of LightLogic ring Intel Key Technology for Lower-Cost, More
Integrated Components for Optical Networking Systems
AUCKLAND - April 26, 2001 - Intel Corporation has announced it has agreed to acquire three companies with key
capabilities and technologies for producing opto-electronic components - electrical components used in optical
networking equipment. The acquisitions will extend Intel's product portfolio to include a new breed of opto-electronic
components that lower the cost and power consumption of optical networking equipment.
Intel has acquired Cognet Inc. and nSerial Corporation, two developers of high-speed electronic components for 10
Gigabit Ethernet optical modules. Cognet has developed components that process electrical signals within optical modules
after those signals have been converted from light waves. nSerial is developing 10 Gigabit Ethernet components that
convert those electrical signals into the protocols used by networking devices. Both companies are developing chipsets
using a complementary metal oxide semiconductor (CMOS) manufacturing process that helps reduce the chipsets' cost and
power consumption associated with more exotic manufacturing processes currently in use.
Intel has also agreed to acquire LightLogic Inc., a leading provider of highly integrated, high-speed optical
transponders targeted at the rapidly growing metropolitan market segment. These transponders integrate high-speed optics
and electronic components into a single device that converts optical signals into fully formatted digital signals
helping to reduce development time for optical networking equipment manufacturers.
"The optical networking equipment industry is now segmenting in a way that requires unique solutions for different
market segments," said Mike Ricci, vice president and general manager of Intel's Optical Products Group. "Our
communications equipment customers are asking us to integrate high-speed electronic and photonic components into cost
effective building blocks that help them reduce time-to-market. "Despite the current slowdown in sales of networking
and communications
gear, we believe that the investments we're making to add key opto-electronic capabilities, together with the company's
core strengths in semiconductor technology, will enable Intel to lead in this industry when the inevitable recovery
occurs."
The acquisitions announced today are the latest actions taken by Intel to extend its opto-electronic capabilities.
During the past year, Intel has become a leading provider of opto-electronic silicon components for communications
equipment that sends data over long distances at 10 Gigabits per second (Gbps) - a speed known in the telecommunications
industry as OC192. Intel's presence in this market segment is the result of its acquisition last year of Giga A/S. Intel
is now developing its next generation of opto-electronic components, which will support data rates of 40 Gbps.
Intel has also begun investing in next-generation semiconductor manufacturing process technology targeted for the
optical market segment. In February, Intel announced an investment in Communicant Semiconductor Technologies AG, based
in Frankfurt, Germany. Communicant is building a manufacturing facility that will build semiconductor components based
on a new Silicon-Germanium-Carbon process technology.
"To keep pace with the increasing bandwidth demands of our customers moving forward, it is essential that we
have the ability to conduct parallel development efforts using multiple technologies and manufacturing processes," said
Ricci. "Our customers will be able to count on Intel for first-generation building blocks for equipment that operates at
the cutting edge of the speed curve and for lower cost, lower power consumption components for their more mainstream
product lines."
About Cognet Cognet, headquartered in Los Angeles, develops electronic components for use in the 10 Gigabit Ethernet
modules. Its products can be found at any point in the network where fiberoptic signals are terminated and converted
into the electrical domain such as switches, servers and edge routers used for very high-performance communication
applications.
About nSerial nSerial, headquartered in Santa Clara, Calif., develops high-speed physical layer components such as
serializer/deserializer (SerDes) transceivers for the 10 Gigabit Ethernet market segment. These components are used in
optical modules as well as a variety of copper media applications including chip-to-chip interconnects and equipment
backplanes. About LightLogic LightLogic, headquartered in Newark, Calif., designs, manufactures and sells
advanced integrated opto-electronic components to original equipment manufactures (OEMs) building next-generation
optical communications systems. These opto-electronic components combine lasers, micro-optics and high-speed electronics
into integrated devices called transponders. The acquisition is subject to regulatory review and customary closing
conditions. Intel expects the transaction to close in the second quarter of this year.
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