Optical Networking chips market worth $250 million in 2Q07

Optical Networking chips generated an estimated $250 million during 2Q 2007. PMC-Sierra took about 32% of the pie. Top 5 vendors in optical networking chip market - PMC-Sierra, Broadlight, Teknovus, Ikanos and Conexant accounted for an estimated 53% of the total revenues.

Unit wise they contributed nearly 57% of the total consumption during the quarter.Since PON deployments of carriers have not yet translated into a mass end-user service, the chipset share on CPE side is just around 20% and the rest comes from the chips consumed in core optical networking devices.

During the 2Q'07, customers continued to invest in EPON solutions. However, since GPON chip solutions remain at higher prices compared to EPON, the revenues realized by GPON chip sub-segment is also a sizable chunk.