Fabrinet signs agreement to manufacture Opnext transceivers

July 20, 2004 San Francisco-- Fabrinet, an engineering and electromechanical manufacturing services company, announced it has signed a volume supply agreement with Opnext (Eatontown, NJ). Under the terms of the agreement, Fabrinet will handle the manufacturing of Opnext's 2.5- and 10-Gbit/sec optical transceivers for ultra long-haul SONET/SDH and WDM applications.

Jul 20th, 2004

July 20, 2004 San Francisco-- Fabrinet, an engineering and electromechanical manufacturing services company, announced it has signed a volume supply agreement with Opnext (Eatontown, NJ). Under the terms of the agreement, Fabrinet will handle the manufacturing of Opnext's 2.5- and 10-Gbit/sec optical transceivers for ultra long-haul SONET/SDH and WDM applications.

"By partnering with Fabrinet for the manufacture of our transceivers, Opnext is able to leverage Fabrinet's expertise in these complex and precise assembly processes, while freeing up our resources to focus on technology design, development, and our customer services and support program," said Shigeru Fujita, senior vice president, Opnext manufacturing. "Outsourcing our transceiver manufacturing operation is part of our overall strategy to position Opnext for long-term success by maximizing efficiencies across the organization. Fabrinet's experience in the manufacture of optical transceiver modules and subassemblies, along with their process transfer, IP protection, and data tracking programs enables us to improve overall manufacturing flexibility and reduce costs."

Under the agreement, Fabrinet will be the manufacturer for the majority of Opnext's 2.5 and 10-Gbit/sec optical transceivers for ultra long-haul SONET/SDH and WDM applications. Opnext has already begun transitioning the transceiver manufacturing capabilities to Fabrinet's Thailand facility. Opnext will continue to design the transceivers as well as their key components such as TOSAs and ROSAs. Opnext will also maintain certain critical manufacturing operations in Japan to support the design and manufacture of its other key components, new product introduction, final assembly, system integration, and testing capabilities.

"Opnext, majority owned by Hitachi, was the first company to mass produce 2.5 Gbit/sec, 640-km DFB lasers and is a leading supplier of both 2.5-Gbit/sec and 10-Gbit/sec transceivers. They have innovative technology and excel in optical component design," noted Dr. Teera Achariyapaopan, chief operating officer for Fabrinet. "We are excited to begin manufacturing their products at our factories in Bangkok, Thailand, and to play a significant role in their future growth."

"Opnext has established an excellent reputation for designing high frequency transceivers for optoelectronic applications," said Tom Mitchell, founder and chief executive of Fabrinet. "Fabrinet is a good fit to manufacture their optical transceivers because of our expertise in the area. Today, we are the world's largest manufacturer of optical transceiver modules and subassemblies on an outsourced basis."

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