RUSNANO and NeoPhotonics Corporation, a leading developer and manufacturer of photonic integrated circuits (FIC), as well as modules and subsystems based on them, announced the signing of investment agreement. It provides for the establishment of an enterprise developing and producing devices based on photonic integrated circuits in the territory of Russia.
Under the agreement, RUSNANO acquired newly issued ordinary shares of NeoPhotonics for $ 39.8 M, comprising about 17% of the allocated common shares of the company after the deal, said the state corporation.
NeoPhotonics company develops and manufactures a wide range of devices, allowing data transfer rates at 10 to 100 GB per second. The competitive advantages include the ability to dynamically optimize bandwidth capacity for the abrupt changes of traffic, as well as high speed data transfer for large numbers of users with broadband communication channels.
NeoPhotonics products combine the set of optical components in photonic integrated circuits, which are linked to the optical modules and subsystems. The company's technologies enable network equipment manufacturers to create faster, more efficient and compact solutions compared to the systems based on individual components.
The design center and production facility created in Russia are designed to develop and release a wide range of FIC equipment for the broadband networks at various levels: long-distance optical telecommunications networks, urban optical networks and networks of fiber to the access point class. Formation of the Russian NeoPhotonics subsidiary should be completed in summer 2014.
One of the unique NeoPhotonics advantages is a vertically integrated development and manufacturing processes. The Russian division is planned to perform a wide range of tasks - from designing to creating ready-made solutions based on the FIC. We believe that our support will accelerate the development and domestic and international market launch time of NeoPhotonics products, - said RUSNANO Managing Director Sergey Polikarpov.
We are pleased that RUSNANO has become our strategic investor. These investments will help implement our strategy to increase presence in the growing global markets - including Russia and the CIS. These markets show rapid development of broadband optical networks. In addition, many of our clients are actively developing it in Russia and Eastern Europe, increasing the equipment sales to service providers and other market segments. We noted this trend several years ago, and have started supplying our products to Russia since then. We believe that with the support of RUSNANO NeoPhotonics will be able to use the opportunities in the region to the fullest extent, - said NeoPhotonics President and CEO Tim Jenks.
NeoPhotonics company has been developing the photonic integrated circuits technology for over 15 years combining patented elements with optical functionality on a silicon chip. Their own toolkit of nanoscale elements design and development technology are closely related to the vertically integrated production and testing process. Devices based on photonic integrated circuits may include much more functional elements than systems based on the individual components. Thus, the expenses on packaging and connecting elements to each other with increasing uniformity and reliability are reduced. In addition, the components cost based on the PIC is subject to the laws of silicon economics - the cost of each next chip manufacturing fall and are less than the cost of production individual components systems with individual packaging and connections.