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Kaiam Initiates Strategic Transceiver Reserve For Data Centre Applications

 

Kaiam, a manufacturer of advanced data centre
optical transceivers, has announced that it has initiated a strategic
transceiver reserve program. The strategic reserve is intended to protect US
and European data centers from the effects of the incipient US-China trade war.

The Trump administration has recently enacted broad-based
tariffs that could impede the importation of Chinese-made optical transceivers
into the US. Because US Cloud data centre companies are largely dependent on a
supply of Chinese-made transceivers, they are highly vulnerable to collateral
damage from the increasingly turbulent US-Chinese relationship. As one of the
few remaining US optical transceiver companies, Kaiam is immune to ill-effects
of US-China trade tensions. Kaiam is building a strategic reserve of
transceivers that its customers can draw down in response to a dwindling Chinese
transceiver supply. The company will populate this reserve with units
fabricated in its UK facility and welcomes partners to add to this reserve.

In today’s global economy, it’s easy to assume goods will
flow seamlessly across borders indefinitely. We sometimes forget that the
optical components that power Cloud companies like Google, Facebook, Amazon,
and others are virtually all made in China and are thus susceptible to trade
tensions. — Jeremy Dietz, VP of Global Sales & Marketing at Kaiam

“In today’s global economy, it’s easy to assume goods will
flow seamlessly across borders indefinitely. We sometimes forget that the
optical components that power Cloud companies like Google, Facebook, Amazon,
and others are virtually all made in China and are thus susceptible to trade
tensions. As patriots, we believe a transceiver reserve is necessary for our
domestic security," said Jeremy Dietz, VP of Global Sales and Marketing at
Kaiam. “Our advanced technology and manufacturing process allows us to easily build
a buffer to protect our nation in case of an embargo or even a natural
disaster. We are currently exploring secure underground locations in states
such as Utah and Nevada."

“Our Constitution implicitly guarantees the fundamental
right to engage in online activities ranging from the sublime to the abject on
a 24/7 basis," said CTO Rob Kalman of Kaiam. “We view it as our patriotic duty
to protect these rights, for it is more true than ever that the price of
freedom is eternal vigilance!"

“All humor aside, we are seeing the benefits of our $80 million
investment in the automated UK line, and have the capacity to serve a large
fraction of the high-performance optical transceiver market. The MEMS-based
micro-packaging technology, together with our recent massive investments in
automation and infrastructure, provides our Western customers with a secure
source, free of potential trade issues," said Bardia Pezeshki, President and
CEO of Kaiam. “As we announced in a recent press release, we aim to serve the
Asian market, with a similar local source, through our partnership with
Broadex. This dual strategy eliminates any potential supply issues on both
sides of the globe."


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