Privately-held optical data communications semiconductor company Ensphere Solutions will use TowerJazz (Nasdaq: TSEM; TASE: TSEM) technology for its optical transceiver IC (ESI-1002) targeting 10G data communication and storage area network applications. The product is already shipping in volume.
Market sources estimate that the deal will generate up to $5 million in annual sales for TowerJazz beginnning next year.
Ensphere chose TowerJazz's 0.18-micron SiGe BiCMOS process. TowerJazz said that this process was chosen for its optimization for optical networking and storage solutions as well as wireless, wireline and tuner applications.
The technology allows Ensphere to build SFP+ modules with sub-1watt power consumption. The overall market size is expected to reach 2.5 billion units per year, with total market sales of $300 million per year.
Ensphere's products are targeted for high-speed optical data communications.
Migdal Ha'emek-based Tower shares closed yesterday at $1.45 on Nasdaq, giving a market cap of $334.61 million.
Tower does business as TowerJazz since acquiring Jazz in 2008.
Published by Globes [online], Israel business news - www.globes-online.com - on October 7, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010