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Altera buys OTN IP developer

Posted: 16 Dec 2010 ?? ?Print Version ?Bookmark and Share

Keywords:Optical Transport Network? IP? acquisition?

Altera Corp. has acquired Avalon Microelectronics Inc., expanding its portfolio of customizable IP solutions for Optical Transport Network (OTN) applications supporting data rates at 1.2G, 2.5G and 10G, as well as 40G and 100G.

"As FPGAs increasingly replace ASICs and ASSPs in the heart of many systems, Altera is delivering more system-level technologies and solutions to our customers," said Don Faria, senior VP, communication and broadcast business division at Altera. "Avalon has been a key partner for many years and is the sole IP supplier for the 100G OTN solutions implemented in our FPGAs."

As communications network bandwidth requirements grow exponentially to support video data (which comprises over 90 percent of consumer traffic), service providers need equipment providing flexible provisioning and seamless upgradeability for next-generation standards, such as 100G and 400G. The optical wavelength-division multiplexing (WDM) equipment market is expected to grow from $6.7 billion to $10.4 billion, or 56 percent from 2010 to 2014, with 40G and 100G deployments leading the way. Because new optical protocol standards are being developed simultaneously with new equipment design, equipment manufacturers require flexible hardware solutions using FPGAs with future cost-reduction paths such as Altera's HardCopy ASICs.

"Our customers require flexible OTN solutions that can operate at very high data rates," said Wally Haas, founder and chief technology officer, Avalon." Aligning two companies that are leaders in their respective space just makes a lot of sense, and we could not be more pleased joining Altera. Altera's 28nm and 40nm product portfolio demonstrates their leadership in high-performance flexible silicon platforms for the communications market. The integration of our two companies' technologies and expertise will dramatically accelerate our communications customers' time to market with next-generation optical networks, as our combined customizable IP enables our customers' differentiation in their market."

Terms have not been disclosed on the acquisition, which is not a material financial matter for Altera.





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