MEMS gaining momentum in optical networking

24 October 2001 News

Despite the recent market downturn, MEMS (Micro-Electro-Mechanical Systems) technology remains an oasis within the telecommunications industry. MEMS will play a key role in providing the advanced components needed to get the most out of telecom carriers' fibre-optic cable investments. As a result, sales of MEMS for use in optical networking will rise from $67m in 2001 to $2,3 bn in 2005.

This is according to research group In-Stat which adds that although there have been layoffs, funding mishaps, and scaled-back business plans among some MEMS manufacturers targeting the optical networking segment, MEMS as a whole has not been impacted as significantly as the greater telecom market. In fact, VCs (venture capitalists) are still providing significant levels of equity to MEMS firms, customers continue to be enthusiastic in their evaluations, and more companies are moving toward production ramp-up.

More significantly, claims the group, new applications for MEMS in optical networking have come to the fore. MEMS-based variable optical attenuators, tunable filters, and tunable lasers have expanded the market beyond switches, providing additional revenue streams within the telecom sector. Market movement is expected to begin in the fourth quarter of 2001, with increased momentum in early 2002.

www.instat.com

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