Intel expands optical product line through acquisition of West Bay Semiconductor

8 July 2003 Santa Clara, CA Lightwave--Intel Corporation today announced it has acquired West Bay Semiconductor Inc. in a cash-for-assets transaction. West Bay Semiconductor, based in Vancouver, Canada, designs high speed and high density networking chips that enable voice and data transport over SONET/SDH-based optical networks. Financial terms were not disclosed.

8 July 2003 Santa Clara, CA Lightwave--Intel Corporation today announced it has acquired West Bay Semiconductor Inc. in a cash-for-assets transaction. West Bay Semiconductor, based in Vancouver, Canada, designs high speed and high density networking chips that enable voice and data transport over SONET/SDH-based optical networks. Financial terms were not disclosed.

West Bay Semiconductor's advanced chip architecture enables high density designs for networking chips. In future products, Intel intends to combine this architectural and design efficiency with its industry-leading 90-nm silicon manufacturing process. These combined efficiencies should substantially reduce the cost, power consumption, and complexity of optical networking equipment that uses these chips.

West Bay Semiconductor's product line includes transport framers and data mappers that enable next-generation SONET/SDH and Ethernet over SONET/SDH (EoS) applications running at speeds of up to 2.5 Gbits/sec. In addition, West Bay Semiconductor is developing next-generation deeply channelized bandwidth management technologies that enable simultaneous, real-time processing of thousands of voice and data streams. By allowing more effective use of bandwidth and simplifying the transport of data protocols over installed fiber, these applications and technologies should help service providers generate additional services from their existing network infrastructure while reducing capital and operating expenditures. West Bay Semiconductor's product line is targeted at the metropolitan core, edge and access optical networks.

The acquisition of West Bay Semiconductor broadens Intel's portfolio of 2.5 Gbits/sec and lower networking chips. The portfolio currently includes network processors and physical layer devices. This expanded product line, combined with Intel's broad portfolio of 10-Gbit/sec networking chips and optical transceivers, will enable Intel to offer system vendors a single architecture and software platform to use in designing and building telecom equipment.

"Combining West Bay Semiconductor's technology with our advanced manufacturing processes should provide substantial benefits to our customers," said Gordon Hunter, vice president, Intel Communications Group and general manager, Optical Products Group. "Our goal is to help equipment makers and service providers reduce their capital and operating costs while upgrading their products and services. Today's news is another example of how Intel continues to strategically invest in the optical networking segment through a combination of acquisitions, internal development, and manufacturing improvements."

"Becoming part of Intel will allow the technologies developed by West Bay Semiconductor to enter the mainstream," said Tino Varelas, West Bay Semiconductor president and chief executive officer. "We look forward to joining a recognized technology leader such as Intel, and are excited about our upcoming generations of optical components."

Most of West Bay Semiconductor's employees will join the Intel Optical Products Group (OPG). OPG is part of the Intel Communications Group, which designs and manufactures high-performance, low-cost opto-electronic components and optical subsystems for the long-haul core, metropolitan, and enterprise market segments.

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