News: Portfolio 2008

A Super-Cool Chip

Lightwire introduces the new information transmission technology at conference.

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At the time of the sale, AANetcom, which made communications chips, employed 55 people here. PMC-Sierra said it planned to double the size of AANetcom's work force within a year, and increase it fivefold within three to five years. Instead, PMC-Sierra has reduced the size of the office, which now numbers about 30 people.

The sale of AANetcom provides a glimpse at what Lightwire's local impact could be. Shastri hopes to double the company's employment here. But there's a limit to how large the company can get locally, even if it strikes gold with its current product. That's partly because Lightwire has no plans to build its own plants.

 

 

The optical module Lightwire introduced Monday is the first in a series of planned products. The next six months will be critical for Lightwire. The company will need to convince large telecommunications equipment-makers that it's found a reliable substitute to traditional optical chips that require too much power and cost too much.

The company's backers think that won't be a problem.

"Customers have said, 'There is a need. Give us the product,"' said Shah of Artiman Ventures.

Copyright © 2008, The Morning Call

 

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