Intel Hands Its Optical and Storage Business to Emcore

Intel has announced that it will sell the enterprise and storage units that comprise its Optical Platform Division and Connects Cables to its old technology partner Emcore. The strategy marks Intel's exit from the communications business, in order "to focus its investments on core communications and embedded market segments in line with its platform strategies."

Emcore will acquire the company's intellectual property relating to tunable lasers, tunable transponders, 300-pin transponders and integrable tunable laser assemblies, as well as optical cable interconnects for high-performance computing clusters.

According to Intel, the company will still focus on developing the third version of the Universal Serial Bus (USB) specifications set, that is expected to come with support for optical connectivity.
The acquisition would allow Emcore to increase its presence on the optical communications market, especially in the segment related to 10-Gigabit Ethernet and storage area network transceivers.

''Following the successful acquisition of the telecom-related assets of Intel's Optical Platform Division, this second acquisition from Intel enables Emcore's Fiber Optics to be a significant supplier for both telecom and datacom products,'' said Reuben F. Richards, executive chairman of Emcore.

Emcore estimates that the new units will boost the company's revenue with about $45 million in the upcoming year. Although both companies pre-announced the event, the transaction is still pending validation and will be completed in the second quarter of this year.

''This acquisition will provide additional manufacturing efficiencies through economies of scale and vertical integration, benefiting our enterprise, storage, telecom, cable and high-performance computing customers,'' Richards continued.

Emcore has recently elected a new chairman, that will take over Intel's Optical Platform Division and Connects Cables divisions. Hong Hou, the company's chairman will report to Richards, as he will be appointed executive chairman. Moreover, the optical specialist will prepare an operational plan regarding the separation of its fiber optics and photovoltaic divisions into new corporations.