Israel PLC integration technology vendors ColorChip re-investment

Israel's high-speed optical modules and optical splitter supplier ColorChip today announced the acquisition of $ 25 million financing to improve operations, accelerate product line expansion.

Israel Development Partnership Program (Israel Growth Partners) led this round of financing, other participants include Vintage Investment Partners, and existing investors Gemini Israel Funds, BRM Group. IGP General Partner ColorChip Haim Shani will join the board. Up to now, ColorChip has completed $ 60 million financing.

ColorChip major development called SystemOnGlass based hybrid integration technology, the use of glass wafer manufacture optical devices, which will bring the field of semiconductor manufacturing technology field of optical communications. ColorChip have their own fab in Israel, and in this to make your own all kinds of devices.

ColorChip company CEO Yigal Ezra indicates, "ColorChip is experiencing rapid growth in the next two years to enhance production capacity more than 15 times. We have already opened up the leading customers in China and the United States. This round of financing will further accelerate the company's expansion to meet the market for ColorChip product rapidly growing demand. "

MACOM acquisition of Japanese assembly plant FiBest become a full supplier of high-speed optical module

Communications chip maker M/A-Com has announced a price of $ 60 million acquisition of a Japanese TOSA/ROSA manufacturers FiBest, the purchase price is 2.4 times FiBest sales. FiBest products are mainly based on the EML 10Gbps TOSA and APD, ROSA. M/A-Com even claimed FiBest is 1000Gbps TOSA/ROSA leader in the field. This acquisition will significantly expand MACOM rate in more than 100G optical components and leading strength and can further enhance MACOM strength in the Japanese market. FiBest 50% of sales come from Japan.

MACON company CEO John Croteau said the acquisition of FiBest help MACOM get high-speed packaging capabilities enhance the MACOM in the field of optical devices competitive, which will help MACOM provide more valuable solutions for optical module customers. Performance of the optical components is critical data center with 100G optical module energy consumption and cost targets. FiBest product line will greatly enhance MACOM data center in 100G optical device market strength. 2017 will be the data center market with 100G optical device a turning year.

MACOM 2011 M & A chip optical module manufacturers Mindspeed, 2014 M & A InP optical chips manufacturers BinOptics. This acquisition marks a MACOM becoming a supplier of optical modules on the core technology further. They already have all the core elements of high-speed optical module.

MACOM this acquisition is expected to be completed in 2016 before the New Year.

Lightcounting cut annual optical module market growth

Market research firm Lightcounting latest quarterly report in September this year a combination of the first half of global operators, Internet companies and communications equipment, devices and corporate earnings since the third quarter shipments data and dynamic communications companies. Their analysis shows some interesting results.

LC pointed out that the second quarter of this year compared to the year before, the investment in Internet companies in the field of large data centers increased by 7%, while telecom operators to invest in the telecommunications sector decreased by 12%. Reduce telecom operators to invest mainly receive complete the world's major telecom operators some major investment projects, such as China Mobile LTE deployment, while the growth rate of the Internet companies to invest in the situation significantly better than in previous years.

Year comparison, sales of data communications equipment manufacturers in the field of growth of 2%, telecommunications equipment grew by 4%. White box manufacturers continue to win market in the area of ​​data center equipment. In the field of telecommunications equipment, Huawei and ZTE continue to gain market share. Pressure on prices may be a factor, but operators have become cautious in the evolution of SDN / NFV may also be the cause.

Device manufacturers in the data communications segment grew 10%, an increase of 7% in the field of telecommunications. Increased deployment of 100Gbps device should be the reason behind this beautiful figure, the price is usually higher 100Gbps devices. Divided by product type, the following figure shows the different types of optical components market performance in the second quarter. Optical connector market growth, although high, but due to low prices, overall sales remain low, slightly higher than $ 50 million. Broadband construction to benefit from China's, FTTx market continued to maintain a rapid growth. China's future investment in LTE-building wireless networks will also stimulate the growth of optical device market. Overall, Ethernet and WDM optical devices is still the bulk of optical components market.

In the August report, Lightcounting had predicted annual optical module market growth of more than 25%. But then some of the light module manufacturers lower growth, the Chinese market situation may change, Lightcounting decided to optical module market growth from 25% down to 15%. Even so, the annual light module market will reach $ 4 billion. The rapid development of emerging companies may supplement the decline of traditional manufacturers performance.

Be prepared to look at the development of optical communication industry

Wall Street analyst team Doyle Publishing Ltd yesterday wrote on SeekingAlpha analysis of financial performance of the leading companies in the field of optical devices Finisar's. Their conclusion is pessimistic. If they have a good analysis, whether our industry in trouble fast.

In fact, a few days ago Finisar CEO Eitan Gertel sudden resignation if he had let the outside world because of poor financial performance of Finisar resign, although officially denied this claim Finisar. Doyle analysis to verify the financial problems may encounter Finisar. These problems can be summed up that is Finisar's profitability fell again, and the reason is behind the rise over the past few years COGS costs faster than sales growth. As a direct result, Finisar's ROA is only 0.07%, ROE was 0.1%, which means that management is no return to investors. This means that even if investors put money in the bank than to vote for Finisar in exchange for higher returns.

Finisar Doyle conclusion is not supported by the current earnings outlook for the stock now. We are not the financial industry, for their analysis and conclusions can not comment. But from the feeling we live in the optical communications industry, the costs continue to rise should be an indisputable fact, more than Finisar, other optical device manufacturers face the same. Finisar has the leading technology in fact there are new technologies and products to improve profitability, most of their competitors do not have this power.

Market prospects for the optical communication industry, all these years of rapid development FTTH, data center, driving the rapid growth of optical devices and fiber optic cable and other markets. Now China Mobile to host the 90 million core km of fiber optic cable is an example of the bidding market hot. Today, however, Doyle read this article, but people have some concerns. After all, the world macroeconomic situation is also far from clear, the Americans say that the increase does not raise interest rates to observe the performance of the Chinese economy, China's own ability to maintain 7% in the second half of the growth or problems. Optical communications market in Europe has just improved, and now into a refugee crisis. Russian oil prices dragged down the market far less. Development of optical communication market growth depends on the bandwidth consumed by an unstable economic situation is difficult to say to have stable bandwidth consumption growth. Today, we still see the Wall Street Journal said that Verizon is expected to next year's estimated income levels and unchanged from 2015, is one of the reasons behind the rapidly changing needs of consumers.

If even Huawei said his far without success, so for today's optical communications industry, especially optical components industry, vigilant even more indispensable.