DMG, Adtech Form Netchip Foundry

LOS ANGELES -- DMG Technologies, a manufacturer of optical subassemblies used in telecomm, datacomm, CATV, and instrumentation systems, and Adtech Technologies, a designer of semiconductor-based optoelectronic devices, today announced the formation of a partnership in which the two firms have pooled resources in order to establish Netchip, a Los Angeles-based optoelectronics semiconductor foundry.

Netchip initially will produce distributed feedback (DFB), Fabry-Perot, and coarse wavelength division multiplexing (CWDM) lasers, as well as avalanche photodiodes (APD). While some of the production is designated for use in DMG's line of optical subassemblies, Netchip is already filling subcontract orders for other international laser manufacturers.

The new firm will utilize the packaging, marketing, and distribution resources of DMG Technologies, according to DMG CEO Malcolm McLean. "DMG and Adtech are very excited to have established Netchip together," said McLean. "Netchip will make high performance, high quality, low cost optoelectronic chips. In fact, we intend to deliver what the market demands - Japanese quality, American service, and Chinese pricing."

"With this synergistic combination," McLean continued, "we can control the price at the chip level and sell chips at the die level. As a result, control of the chip cost allows DMG to have tighter control of the module cost. This means further production savings, which we fully intend to pass on to our customers."

In addition, Dr. Toshi Makino, recently appointed CTO of DMG, also will act as CTO of Netchip. Dr. Makino is well known for his design prowess and engineering leadership in microwave solid state oscillators, integrated optics, and, especially, semiconductor lasers. Dr. Makino commented, "Netchip has assembled an outstanding team of semiconductor design and process engineers from such firms as Nortel, Agere, Fujitsu, and Hitachi. We are confident that we can deliver superior technology at an affordable price."

DMG Technologies Inc.