Emcore Acquires Molex Unit

Molex sells off its 10-Gbit/s transceiver business, which targets Xenpak and X2 modules primarily

October 9, 2003

2 Min Read

SOMERSET, N.J. -- EMCORE Corporation (Nasdaq: EMKR), a leading provider of semiconductor technologies for global communications, announced today that it has acquired Molex Incorporated's 10 Gigabit (10G) Ethernet transceiver business. The transaction includes assets, products, technology and intellectual property related to Molex's 10G Ethernet transceiver business, which is primarily focused on Xenpak and X2 form factor products, and is currently located in Downers Grove, Illinois. As part of the agreement, approximately 17 Molex employees will join EMCORE. The business will become a part of EMCORE's Fiber Optics division and will initially continue to operate in a portion of Molex's Downers Grove facility to be leased by EMCORE. The 10G Ethernet market is expected to expand significantly in the near term. Tom Hausken, Director of Optical Components at Strategies Unlimited, a market research firm, expects the market for 10G transceivers operating at 1310 nm to grow 66% per year, to over $380 million by 2007. According to Dr. Hausken, "Most of these transceivers will be installed into shorter links, where Emcore's products are used, rather than the long haul links we often hear about." "We are very excited about this acquisition and the growth opportunities it creates for our Company," said Reuben F. Richards, Jr., President and CEO of EMCORE Corporation. "We believe that this acquisition puts Emcore at the forefront of transceiver technology for 10 Gigabit Ethernet. Molex's 10G Ethernet transceiver product complements EMCORE's internal capabilities and strategy for growing its fiber optics business and gives EMCORE a significant competitive advantage and the most complete 10G Ethernet transceiver product portfolio." "We are pleased to have completed the sale of our 10G Ethernet transceiver business as planned," said Michael Nauman, President of Molex's Fiber Optics Division. "We are impressed with Emcore's expertise and commitment in the growing 10G Ethernet space and chose to sell the business to them accordingly. Our 10G Ethernet team looks forward to joining Emcore and to smoothly transitioning the product line to the market. We believe the business is now well poised for success with the Emcore team.” Emcore Corp.Molex Inc.

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