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Press Release

Intel Expands Optical Networking Business

Adds Photonics Design And Manufacturing As Part Of Optical Communications Strategy

SANTA CLARA, Calif., March 5, 2002-- Intel Corporation is expanding its optical networking business to include photonics design and manufacturing, a key capability that adds to its core strength in opto-electronic components and highly integrated optical modules. The announcement is part of Intel's long-term strategy to grow its communications business and be the leading building block supplier for high speed, high capacity optical networks.

Opto-electronics involves the conversion of electronic signals to light pulses and vice-versa, for transmission and processing of information over networks. Photonics is a specialized field that involves manipulating light pulses over optical fiber. In the photonics segment, functions such as switching and signal conditioning can be implemented in silicon using the same planar process technology used in making semiconductors today. This enables faster, lower-cost telecommunications equipment, which in turn holds promise for more accessible broadband services.

Intel is providing photonic design and manufacturing services for optical component and system manufacturers focused on the metropolitan and long haul market segments. In addition to offering application-specific design libraries for components such as custom array waveguides and other basic photonic building blocks, Intel is offering customer-specified solutions at varying levels of integration, from wafers and die to subassemblies and finished photonic modules.

"Intel's entry into photonics is an outgrowth of many years of internal research and development and a core expertise in silicon manufacturing," said Rama Shukla, General Manager of Intel Photonics. "With the trend toward higher levels of integration and application-specific needs in photonics, we're well positioned to provide customer-driven solutions with state-of-the-art design and process technology that offers best-in-class performance, cost and density."

To support its photonics business, Intel recently completed a 70,000-foot design, fabrication, and assembly/test facility in San Jose, California built specifically for photonic component manufacturing using 8-inch silicon wafers. Intel also recently acquired Templex Technology, Inc., which provided additional photonics expertise and a component technology known as Bragg-Grating, a highly precise filtering and mixing technology used in the manufacturing of photonic components.

Since 1999, Intel has been rapidly growing both its optical-electrical and photonic capabilities, including the addition of key optical engineering expertise and technology through acquisitions. Coupled with the company's industry-leading silicon manufacturing technology, the company has significant core competence in high-speed CMOS design, automated optics manufacturing, and cost-effective photonic solutions.

"Our goal is to be the leading building block supplier to OEMs building high speed, high capacity optical networks," said Mike Ricci, Vice President and General Manager of Intel's Optical Products Group. "We're bringing great technologies, great products, and industry-leading manufacturing expertise to component and system manufacturers, who can reduce development time and costs while increasing performance."

Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at

Intel and Pentium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.

* Other names and brands may be claimed as the property of others.

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