Similarly, the optical components industry has suffered from over-capacity for years, depressing profitability and returns.
These speeds are possible because the optical components on same chip as the processors.
FORBES: IBM Develops Nanophotonics Chip For Faster Communications
Many optical components are typically constructed using materials such as gallium arsenide and indium phosphide.
However, it may be some time before optical components compete with silicon because of a fundamental barrier.
One of the major reasons behind the telecom players reluctance to increase capacity is the high cost of optical components.
Though not directly affected by the Thai flooding, the company cautioned that they could be affected by potential shortages of non-optical components used in customer systems, like hard disk drives.
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Unlike other venture firms that suffered from the market collapse, NEA managed to avoid huge losses in its public portfolio companies by staying clear of dot-com retailers and focusing on communications services and optical components.
The analyst notes that there are two key upcoming catalyst for the stock: a meeting with analysts on February 16, and a key optical components trade show in Los Angeles the week of March 5.
FORBES: JDSU: Credit Suisses Ups Rating; More Than Just Optical
Update : JDSU CEO Tom Waechter said in an interview with Forbes this afternoon that the company has been benefiting from a steady stream of new products, with the optical components group generating 65% of revenue from products two years old or less.
FORBES: JDSU Rallies On Q3 Beat; Rebound For Optical Parts (Update)
There were particularly severe issues for companies making disk drives and optical networking components, but the impact was widespread.
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Not exactly--Nortel was looking at shedding the low-margin bottom of its optical-components business, saving the jazziest lines for itself.
Mitsubishi also made lots of money when it sold its stake in Photonic Integration Research, an American optical-components maker, last year.
Shares of the optical networking components maker Finisar are trading higher in late trading after the company posted better-than-expected profits for its fiscal first quarter ended July 31.
Shares of optical networking components company JDSU, which had rallied after hours on stronger-than-expected results for its fiscal second quarter ended December 31, have reversed course this morning and now trade in the red.
FORBES: JDSU Off Despite Big FY Q2; Margin Woes; UBS Cuts Rating
As I noted in a post yesterday, the optical networking components companies were hit hard on Tuesday on a wave of concern about how the industry will be affected by damage to key contract manufacturer Fabrinet from the recent severe flooding in Thailand.
The computer maker on Wednesday is discussing its advances in making optical-communications components from silicon, the mainstay material used in conventional computer chips.
Such crystals might serve as components of optical switches which would, among other things, fulfill the role played by transistors in conventional electronics.
They were only minor players in these erstwhile American-led industries in the 1980s but are now dominant in everything from optical fibers to smartphone components, not to mention virtually every serious manufacturing challenge in the aerospace industry.
If it were possible to move the components around using optical tweezers, and put them directly on to a base, that would open up a completely different approach to the problem and might, ultimately, result in a new manufacturing technology.
Several of the individual components needed to build an optical computer have been demonstrated and even put together into a working machine.
The bottom line is that while you might not ever have heard of Fabrinet, the company plays a key role in the optical networking sector, as a sole source provider of many components.
Companies now are racing to make the components faster and drive the cost much lower, so that optical connections can also accelerate communications inside and among PCs and consumer-electronics devices.
Stereo line-in and out ports, plus optical in and outs, should allow you to connect this PC with your stereo system and other stereo components.
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