NTT Electronics, Oki team on optics

Fiber Optics Weekly Update, August 8, 2003

NTT Electronics Corp. and Oki Electric Industry Co., Ltd. announced that that they have reached an agreement to form an alliance covering a wide range of the optical communication device business, including the integration of two companies' production lines. The alliance aims to enhance product performance, cost competitiveness, and management efficiency in the recovering and steadily expanding optical communication device market by combining both companies' expertise in products, process technologies, and production capabilities. The new integrated production lines will be in operation in early August. Both NEL and Oki are leading vendors in the optical communication device market. NEL excels in process technology for high-speed laser diodes with greater-than 2.5Gb/s products, as well as wavelength multiplexing products. Oki's strengths lie in its abundant product lineup and volume production technology for photo diodes from 2.5Gb/s to 10b/s and 2.5Gb/s laser diodes.

Under the agreement, the two companies will integrate their wafer-process and volume-production technologies for laser diode chips, photo diode chips, modulators, and hybrid-functioned devices into NEL's production lines. They will enhance each product lineup by jointly developing new optical communications devices and by offering each product through OEM, which will result in reducing development time and redundant investment. In order to strengthen sales capabilities, NEL and Oki will also effectively use their sales channels to reinforce their respective activities. Through these measures, the two companies intend to increase their competitiveness and expand business. While the two companies cooperate for the integration of wafer process and the effective use of sales channels, the two companies aim to extend the alliance range for further enhancement of their optical communications device business. This includes the study for the improvement of assembly process and the effective usage of mutual resources.