Companies Announce Deal to Sell Optical Transceivers in China
Optical transceiver designer Kaiam, and Broadex, an optical module manufacturer, have announced a partnership agreement in which Broadex would manufacture and supply high-end 100G transceivers into the China market.
The two companies announced the signing of a memorandum of understanding (MOU) for furthering cooperation on volume production of QSFP28 100G-CWDM4 transceivers based on Kaiam's innovative LightScale®2 platform. The company said its LightScale2 architecture has fundamental advantages in cost and performance and is ideally suited for high-volume applications. The agreement allows Broadex to manufacture these units in China and directly address Chinese customers who require local production. This also complements Kaiam's in-house manufacturing in the UK and provides further capacity to address the high volume data center market.
"We anticipate very strong demand for 100G transceivers based on our LightScale2 technology," said Dietmar Zapf, GM and VP of Manufacturing at Kaiam. "In addition to the production lines already running at our Livingston, UK facility, we need to develop and secure further expanded capacity for manufacturing these products in high volume. The MOU signed with Broadex would allow us to leverage Broadex's manufacturing expertise and infrastructure and expand our capacity in the next 3"“6 months to meet high demand."
"We are glad that Kaiam chose to continue working with us for manufacturing its new non-hermetic transceivers for data center applications," said Yong Ding, PhD, VP and CTO of Broadex Technologies. "We have been producing OSA-level components for Kaiam in high volumes for several years now. The LightScale2 platform is optimized to deliver maximum value and performance in the data center environment at dramatically lower costs. We will work aggressively to quickly ramp to high volumes with high yields."
"Kaiam is eagerly anticipating expansion into the China market with the assistance of our valued partners at Broadex," stated Jeremy Dietz, VP of Global Sales and Marketing at Kaiam. "The two companies will combine on business growth activities in and around China to strengthen Kaiam and Broadex's market share in optical transceivers for data centers as well as PLCs for 5G rollouts."
The MOU includes details of mutual technology cooperation and manufacturing arrangements on timeline, cost roadmap, local sourcing and China market development.
