GigOptix and CPqD to form new JV in Brazil
The new company, BrPhotonics, is set to provide advanced High-Speed Components for Optical Communications utilising Silicon Photonics (SiPh) and Thin Film Polymer on Silicon Technologies. The aim is to advance 100Gbps to 1Tbps fibre-optic long haul, metro links and Cloud-connectivity in CFP2 and CFP4 applications
GigOptix and Brazil-based research centre CPqD have signed a definitive agreements to incept a newly established joint venture company.
Named BrPhotonics Produtos Optoeletrônicos LTDA (BrP), the joint venture will be headquartered in Campinas, Brazil.
Both partners will transfer into BrPhotonics their knowledge-base and intellectual property of current existing technologies, and will jointly work through the partnership to enhance, develop, and commercialise advanced products based on these technologies.
GigOptix will transfer to Brazil its Thin Film Polymer on Silicon (TFPS) technology, inventory related to the TFPS platform, as well as the complete production line equipment currently residing at its Bothell, Washington, facility.
CPqD will transfer to BrPhotonics its Silicon Photonics (SiPh) technology, optical packaging expertise and design and testing capabilities. In addition, CPqD will provide space for the BrPhotonics corporate headquarters and the funding for the BrPhotonics operations.
Business Structure
The ownership of BrPhotonics will be split between the companies, with CPqD controlling a 51 percent share and the remaining 49 percent controlled by GigOptix. BrPhotonics will be managed by a team that will be comprised of three Officers, and four person Board of Directors.
The Board of Directors of BrPhotonics will include two representatives from GigOptix and two representatives from CPqD, and will be initially chaired by GigOptix Chairman of the Board of Directors and Chief Executive Officer Avi Katz.
BrPhotonics will launch operations immediately and will announce shortly the nominated executives and board members.
GigOptix will act as BrPhotonics' global exclusive sales and marketing agent for all its products, except in Brazil, where the sales will be done directly by BrPhotonics. BrPhotonics will enable GigOptix to extend its business footprint in Brazil through access to BrPhotonics' regional office and sales force.
BrPhotonics' headquarters will be located within the CPqD campus. Logistics of the transfer of equipment and IP to BrPhotonics facility will begin immediately.
"Today we are honoured and delighted to announce the joint venture partnership between GigOptix and CPqD to form BrPhotonics," says Avi Katz, Chairman and Chief Executive Officer of GigOptix, Inc.
"The creation of BrPhotonics is another innovative business strategy from GigOptix to gain access to advanced technologies and partner with some of the most highly skilled technical teams in the world. This latest agreement follows our long history of similar access to new technologies, including when GigOptix licensed the Silicon Germanium Millimetrewave Technology from IBM for E-band chipsets in June 2012, and several successful corporate acquisitions. More so, with the inception of BrPhotonics, GigOptix is setting a new and solid foothold in Brazil which is one of the fastest growing markets for our entire high-speed communications devices portfolio, as part of our global reach enhancement."
"CPqD is delighted to announce the creation of BrPhotonics as a strategic step to increase photonic companies' ecosystem in Brazil," adds Helio Graciosa, CEO of CPqD. "BrPhotonics creation represents an opportunity to reach the market with the latest advances in integrated photonics developed at CPqD in last years, supported by Brazilian Government (Ministry of Communications/FUNTTEL and Ministry of Science, Technology and Innovation/FINEP). The complementary R&D activities between CPqD and GigOptix are key drivers to BrPhotonics roadmap and future products."
"This partnership leverages expertise from GigOptix and CPqD to bring small form factor Thin Film Polymer on Silicon (TFPS) modulation devices and Silicon Photonics (SiPh) based products to the market in the fastest and most efficient manner. CPqD brings a wealth of silicon photonics knowledge, device designs, optical device packaging, and world renowned systems capability to the partnership, and GigOptix reciprocates with our well-developed TFPSTM technology and our world-wide deep commercialisation reach. GigOptix will continue to enhance our fabless, process-agnostic business model and to focus our efforts on the design and commercialization of semiconductor devices for high speed communication links. This enables information streaming, end-to-end, over the network from the content generator and into the end-user appliances," continues Avi Katz.
"We are honoured to sign the BrPhotonics joint venture partnership with GigOptix. BrPhotonics has been launched with a great technological capability with the advanced Thin Film Polymer on Silicon technology from GigOptix and Silicon Photonics technology from CPqD. We are also pleased with the strong support that we have received from the Brazilian government in the formation of BrPhotonics. The business plan for BrPhotonics that has been put together with CPqD and GigOptix represents a significant development opportunity for new optical components, reference platforms, and technologies," concludes Helio Graciosa.
Business Partnership
BrPhotonics' roadmap will include a 100Gbps DP-QPSK TOSA and ROSA for CFP2 form factor reference platforms with the integration of a TFPS modulator today. Future products are expected to include the development of a next generation 100Gbps to 1Tbps TOSA and ROSA for CFP4 form factor reference platforms utilising Silicon Photonics components.
The TFPS technology is an excellent zero-chirp medium for electro-optical modulation and capable of very high data rates in advanced linear and multi-level modulation systems.
Silicon Photonics has many potential advantages including longer optical link distances, lower power and cost, and smaller form factors. These technology advantages may enable novel communications architectures and platforms to address capacity concerns with growing cloud services, entertainment on-demand, and big data processing.
In the January 2014 MarketsandMarkets report, "Silicon Photonics Market by Products (Silicon Optical Interconnects & Wavelength Division Multiplexer Filters & Others), Applications (Telecommunication, Datacom, High Performance Computing & Others) & Geography - Analysis & Forecast (2013-2020)," the Silicon Photonics global market revenue is estimated to grow from $88.66 million in 2013 to $410.78 million in 2020 at a CAGR of 24.5 percent.
According to this market research report, this growth will be led by the telecom and datacom applications market for Silicon Photonics products. The report also projects that the Silicon Photonics applications in the high performance computing sector are expected to grow rapidly in the coming seven years with a CAGR of 48 percent.
BrPhotonics' products will utilise sophisticated TFPS and SiPh technologies to advance 100Gbps to 1Tbps fibre-optics long haul, metro links and cloud connectivity. BrPhotonics' unique portfolio of small form factor components will address CFP2 and CFP4 applications by enabling greater network capacity through superior linearisation, multi-level modulation, and other advanced techniques.
BrPhotonics will showcase a 100Gbps TOSA for CFP2 reference design at OFC2014, scheduled to take place from March 11th to 13th, 2014, in San Francisco, California, at the GigOptix's booth #1531.
