INDUSTRY FOCUS TOP NEWS STORIES 2021
2021: A YEAR OF CONSOLIDATION
2021 was another year of great innovation in the fibre optics industry, however the news was dominated by consolidation in the market with several buy-outs and mergers involving some of the industry’s biggest players, writes Optical Communications editor Peter Dykes .
II-VI The year opened with a continuation of the bidding
MOLEX Also in January, Molex announced
In addition to taking full advantage of the enhanced design prowess, intelligent digital supply chain and global manufacturing footprint, Molex will develop centres of optical fibre excellence in Phoenix and Caldwell to support new business opportunities from concept to production.
it was acquiring Fiberguide Industries, a manufacturer of customised optical fibre solutions based in Caldwell, Idaho, for an undisclosed sum. Fiberguide joined Molex’s Polymicro business, a Phoenix- based provider of specialty optical fibre and fluidic-based products tailored for medical, industrial and datacom applications. Molex said that Fiberguide is uniquely positioned to help it address the stringent needs of medical applications, including high-power laser surgery, DNA sequencing and flow cytometry. Both Molex and Fiberguide bring expertise in optical fibres, analytical probes and fully packaged assemblies to support increasing demands for minimally invasive medical procedures. Additionally, a complementary portfolio of design capabilities provides customer-centric solutions for industrial monitoring and sensing as well as datacom applications that require reliable performance in extremely harsh environments. “Fiberguide contributes more than 40 years of technological innovation to Molex,” said Devinder Saini, Ph.D., VP of Technology for Fiberguide. “We share similar cultures and are united in our focus to deliver the most powerful, vertically integrated fibre solutions available.”
war between Lumentum and II-VI over Coherent’s market-leading photonics and lasers businesses, including its microelectronics, precision manufacturing, instrumentation, and aerospace and defence market. Having finally got the hard-won approval from the Chinese regulatory State Administration for Market Regulation (SAMR), Lumentum thought it had a done deal but II-IV kept upping the stakes until it finally won the day. Ironically, based on share prices at the time, II-VI’s US$6.88 billion takeover offer was less than Lumentum’s US$6.92 billion bid however, a Coherent statement said at the time that the deal with II-VI was a better fit than that of the rival bidder. It was also felt that there would be less overlap with II-VI’s products, particularly in the lucrative Chinese market. Although both companies have a foot in many different industries, the deal makes II-IV a giant in coherent communications at a time when the industry is transitioning to photonics and the potential for profits is massive. According to July 2021 update of Dell’Oro’s Optical Transport Market 5-Year Forecast report, the optical transport market, largely driven by WDM equipment, is predicted to grow annually for the next five years, reaching nearly US$18 billion.
MARVELL In April, the name of
Inphi disappeared from the industry after 21 years, following shareholder approval of its acquisition by Marvell Technology, a specialist in data infrastructure semiconductor solutions. Marvell announced its intention to acquire the Singapore-based company back in October 2020 and with the completion of the buy-out, the company confirmed the Inphi brand would be dropped. Predictably however, everyone involved in the deal was enthusiastic about the possibilities opened up by the joining of the two companies. “I am excited to welcome the Inphi team to Marvell and look forward to realising the tremendous value creation potential of this combination for our customers, employees and shareholders. Together we will have the portfolio, capabilities, and scale to expand Marvell’s leadership in its key growth end markets of 5G, Cloud and Automotive,” said Matt Murphy, president and CEO of Marvell. “I am also pleased that we
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INDUSTRY FOCUS 2021/2022
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