Kaiam and Broadex Partner to Produce Optical Transceivers in China

Kaiam, a producer of advanced data center optical transceivers based in Newark, California, and Broadex, a supplier of optical modules in Jiaxing, China, announced a partnership agreement in the form of a memorandum of understanding (MOU).
Under the terms of the agreement, Broadex will manufacture and supply high-end transceivers into the China market. The companies intend to strengthen Kaiam and Broadex’s market share in China related to optical transceivers for data centers and PLCs for 5G rollouts.

MOU Brings Kaiam’s Optical Transceivers to Chinese Market

The companies intend to further cooperate on the volume production of QSFP28 100G-CWDM4 transceivers based on Kaiam’s LightScale®2 platform. Kaiam contends that the LightScale2 architecture offers inherent advantages in cost and performance and is suited for high-volume production. The agreement allows Broadex to manufacture these units in China for the Chinese customers who require local production. This Chinese production also complements Kaiam’s in-house manufacturing in the UK and adds production capacity to address the high volume data center market.

The MOU also includes details of mutual technology cooperation and manufacturing arrangements on a timeline and with a cost roadmap. Additionally, the MOU involves local sourcing and China market development.

“We anticipate very strong demand for 100G transceivers based on our LightScale2 technology,” said Dietmar Zapf, GM / VP of Manufacturing at Kaiam. “The MOU signed with Broadex would allow us to leverage Broadex’s manufacturing expertise and infrastructure and expand our capacity in the next 3–6 months to meet high demand.”

Yong Ding, Ph.D., VP, and CTO of Broadex Technologies commented, “We have been producing OSA-level components for Kaiam in high volumes for several years now. The LightScale2 platform is optimized to deliver maximum value and performance in the data center environment at dramatically lower costs. We will work aggressively to quickly ramp to high volumes with high yields.”