Intel has acquired Canadian chip maker West Bay Semiconductor, which builds high-density network chips for Synchronous Optical Networking/ Synchronous Digital Hierarchy-based optical networks.
The chip giant said that it will combine West Bay's high-density designs with its own 90 nanometre silicon manufacturing process to substantially reduce the cost, power consumption and complexity of optical networking equipment.
The technologies will allow more effective use of bandwidth and help service providers generate new services from their existing network infrastructure while reducing capital and operating costs, according to Intel.
"Combining West Bay's technology with our advanced manufacturing processes should provide substantial benefits to our customers," said Gordon Hunter, vice president of Intel's communications group.
"Our goal is to help equipment makers and service providers reduce their capital and operating costs while upgrading their products and services."
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