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$100billion opportunity for IBM and Intel

When the fastest technology in terms of communication called light is combined with semiconductor chips with the help of tried and tested production processes, we call it Nanometrics Incorporated (NASDAQ:NANO), explained Peter De Dobbelaere who is the Vice President of Luxtera in an exclusive interview. The result would be cheaper iPhones, laptops, etc. A technology like this will help us in designing and connecting the high end future servers, routers and switches to meet the demand for high-speed data access at an affordable cost. The reason behind the interest taken by International Business Machines Corp. (NYSE:IBM) is the challenges that will arise due to bandwidth expansion in their data centres and the resolution is Silicon Photonics. International Business Machines Corp. (NYSE:IBM) announced its win over the integration of Photonics with CMOS chips. This peak was attained by Luxtera more than four years ago.

Though there is similarity between the technology of both the organizations, it is not clear that how will IBM use for the final products to come into existence. Luxtera developed a light source to be used along with Nanometrics Incorporated (NASDAQ:NANO) processes and chip designs. They have zeroed down on economical ways to light to get in and out of the chips and how to pack these products. International Business Machines Corp. (NYSE:IBM) revealed about the use of various wavelengths of light for their machines.

When asked about the latest 90-nanometer technology of International Business Machines Corp. (NYSE:IBM) he told that the word 90-nanometers explain the size for the process of designing they are using. He then disclosed that his firm is working upon 14-nanometer technology, which is far ahead of the former one. The idea behind International Business Machines Corp. (NYSE:IBM) technique is the smaller it is, the better would be the results inspired by the well proven Moore’s Law.

He further told us that they are working hard on their Research and development and the production volumes are being closely monitored. They made samples of first 100 GB chipsets and confirmed about shipment of more than one million 10 GB channels and are producing 40 GB and 56 GB products. He agreed that both International Business Machines Corp.(NYSE:IBM) and Intel Corporation (NASDAQ:INTC) have brilliantly out shown themselves in this technology. They are coming up with new designs and he expects them to carve out a niche like Luxtera in the Silicon Photonics brick-and –mortar space. With a smile on his face he concluded the interview and said that he expects Luxtera and Nanometrics Incorporated (NASDAQ:NANO) to in bringing up major revolutions in mobile data, cloud computing, etc.

Shares of International Business Machines Corp. (NYSE:IBM) were down by 0.12% to close at $191.76.
Shares of Intel Corporation (NASDAQ:INTC) were up by 0.18% to close at $20.53.

Published by Donna Fago

I believe in writing content Informing investors with the knowledge they need to invest better today- I have been following the markets for many years and was asked to join the team at WallStreetPR.com recently due to my passion for the markets.