Chipmaker ClariPhy Communications Inc. has secured a $14 million round of funding with investors including Nokia Networks .

ClariPhy, whose products include an ASIC for 40Gbit/s optical modules, raised $24 million last year. CEO Paul Voois won't say how much ClariPhy has raised in total, but he says it's more than $50 million.

Why this matters
It's fallout from the Cisco Systems Inc. (Nasdaq: CSCO) acquisition of CoreOptics. ClariPhy would have gotten its funding anyway, but Nokia Siemens has extra incentive having seen its declared 40Gbit/s partner get snapped up.

Cisco has continued to supply CoreOptics's customers, including Nokia Siemens, as a spokeswoman confirmed before the ClariPhy arrangement had been announced. (Light Reading had asked after the announcement that SK Telecom (Nasdaq: SKM) had chosen Nokia Siemens for 40Gbit/s and 100Gbit/s transport.)

But that's short-term. Nobody expects systems vendors to go begging to Cisco long-term, even if Cisco remains willing to sell the technology. Nokia Siemens's investment helps cement a 40Gbit/s and probable 100Gbit/s chip source.

ClariPhy's 40Gbit/s chip combines a few key elements of a coherent receiver: a digital signal processor (DSP), an analog-to-digital coverter (ADC), and a multiplexer/demultiplexer. The company plans to develop the same chip for 100 Gbit/s, Voois says. (He isn't saying when.)

ClariPhy was probably the only choice for Nokia Siemens at the time, but competition is arriving. In May, PMC-Sierra Inc. (Nasdaq: PMCS) announced plans for its own 40Gbit/s coherent ASIC, called POLO, which is due to sample in the third quarter.

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— Craig Matsumoto, West Coast Editor, Light Reading