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Optical IC sales to jump by $5.43B in 2006

Posted: 28 Aug 2002 ?? ?Print Version ?Bookmark and Share

Keywords:optical switch? ic? pioneer consulting? mems? microelectrochemical systems?

ICs used in optical switches will represent a $5.4 billion market opportunity by 2006, according to Pioneer Consulting's latest report, "Optical Chips: Enabling Technologies and Markets from Semiconductors to MEMS, Nano-Optics, and Photonic Crystals." According to this market and technology assessment report, total worldwide optical IC sales will grow from $654.3 million in 2002 to $5.43 billion by 2006.

Semiconductor-based ICs enjoy a wide lead over integrated optical chips based on microelectromechanical systems (MEMS), nanotechnology, and related technologies. MEMS chips, manufactured by companies such as Agilent, Silicon Light Machines, Network Photonics and Umachines, offer a clear challenge to semiconductor-based ICs in the small port count, optical switch market.

Nanotechnology, on the other hand, has been recently heralded by some as a disruptive, breakthrough technology that will eventually sound the death knell of semiconductor-based components used in optical networking.

"The dominance of semiconductor-based chips will continue for some time. But the question is how long will the market dominance of semiconductor-based chip manufacturers, such as Intel, IBM, Agere Systems, and Broadcom, continue," explained Paul Kellett, senior director-research at Pioneer.

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