Optical Networking chips generated an estimated $264.5 million during 3Q 2007. That represents growth of about 6% q-o-q. PMC-Sierra led with market share of just under 32% which is roughly the same share as in last quarter.

Top 5 vendors in optical networking chip market - PMC-Sierra, Teknovus, Broadlight, Ikanos and Conexant accounted for an estimated 53% of the total revenues during the quarter, which again is somewhat similar to their combined share in 2Q07.

Unit wise the top 5 vendors supplied 57% of the total consumption during the quarter.

Since optical networking deployments of carriers have not yet translated into a mass end-user service, the chipset contribution on CPE side is just around 20%. The rest comes from the chips consumed in core optical networking devices.