Infinera Announces New Line of High-performance 1.6 Tb/s Optics to Reduce Power per Bit by up to 75% for AI-driven Intra-Data Center Connectivity Applications
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Insights
The introduction of Infinera's ICE-D optics represents a significant technological advancement in data center interconnects. The use of monolithic indium phosphide (InP) photonic integrated circuit (PIC) technology is a noteworthy development, as it seeks to address the growing demand for high-speed connectivity within data centers.
From a market perspective, the ability to support 1.6 terabits per second and beyond is a response to the increasing requirements for bandwidth, largely driven by AI applications and switched network operations. The projected tenfold increase in market demand for high-speed, intermediate-reach intra-data center interconnect technology suggests a substantial market opportunity for Infinera. Their focus on reducing cost and power per bit may provide them a competitive edge, as operational efficiency is a key factor for data center operators when considering upgrades to their infrastructure.
However, the adoption rate of such technology will depend on several factors, including compatibility with existing systems, the total cost of ownership and the reliability and performance of the optics under real-world conditions. Infinera's success will be contingent upon their ability to effectively market these benefits and demonstrate tangible value to potential customers.
The announcement from Infinera regarding their new ICE-D optics could have a material impact on their financial performance. By targeting a specific segment of the market that is expected to experience significant growth, Infinera may be positioning itself to capture a larger market share in the intra-data center optics space.
Investors should monitor the company's ability to scale production, manage costs and maintain quality as they ramp up to meet the anticipated demand. The long-term financial health of Infinera will likely be influenced by the market's reception of ICE-D optics and the company's ability to sustain innovation while keeping production costs in check.
It's important to note that while the technology's promise is considerable, the actual impact on Infinera's stock will depend on successful execution. This includes not only the technical performance of the product but also the company's sales strategy and the competitive landscape. Any delays or issues in these areas could temper investor enthusiasm.
Infinera's ICE-D optics leveraging monolithic indium phosphide (InP) photonic integrated circuit (PIC) technology could be a game-changer for intra-data center communications. The InP material system has superior electronic and photonic properties, which are particularly advantageous for high-speed optical communications. This technology could potentially offer better performance in terms of speed, efficiency and reliability compared to traditional solutions.
One of the key challenges in the adoption of new optical technology is ensuring compatibility with existing data center infrastructure. Data center operators are often hesitant to make significant changes that require downtime or substantial reconfiguration. Therefore, Infinera's ability to integrate seamlessly with existing systems will be critical to the technology's adoption and success.
Furthermore, the emphasis on lowering power consumption is in line with the industry's push towards greener and more sustainable data center operations. If Infinera's ICE-D optics can deliver on its promises, it could set a new standard for intra-data center communications, influencing future technological developments in the field.
SAN JOSE, Calif. , March 14, 2024 (GLOBE NEWSWIRE) -- Infinera (Nasdaq: INFN) announced today ICE-D, a new line of high-speed intra-data center optics based on monolithic indium phosphide (InP) photonic integrated circuit (PIC) technology. ICE-D optics are designed to dramatically lower cost and power per bit while providing intra-data center connectivity at speeds of 1.6 terabits per second (Tb/s) and greater. This technology enables data center operators to cost-effectively keep pace with relentless growth in bandwidth.
Driven by AI workloads and switched network applications, market demand for high-speed (800G+), intermediate-reach (100+ meters) intra-data center interconnect technology is projected to grow nearly tenfold over the next four years – from about 300,000 units in 2023 to more than 2.5 million units by 2027, with a total market opportunity of greater than
“Intra-data center bandwidth is growing at an unprecedented rate as artificial intelligence applications transform connectivity demands between processing devices,” said Scott Wilkinson, Lead Analyst, Networking Components at Cignal AI. “This global trend will require innovative high-speed, low-latency, and power-efficient solutions to enable data center operators to economically meet the challenge of scaling intra-data center connectivity – today and well into the future.”
Leveraging the unique capabilities of Infinera’s U.S.-based optical semiconductor fab, Infinera’s intra-data center optical connectivity technology enables highly integrated solutions that combine multiple optical functions onto a single monolithic chip, resulting in industry-leading density, low latency, and power efficiency. ICE-D test chips are currently available and have demonstrated a reduction in power per bit by as much as 75 percent while simultaneously increasing connectivity speed.
“Infinera is excited to apply our 20+ years of pioneering innovation in optical connectivity solutions to solve the challenge of economically scaling intra-data center connectivity to support the deluge of bandwidth stemming from AI applications,” said Ron Johnson, SVP and General Manager of Optical Systems and Global Engineering at Infinera. “Our unique monolithic InP PIC technology puts us in an ideal position to develop innovative technologies to provide cost- and power-efficient, high-capacity intra-data center connectivity solutions.”
Infinera’s flexible ICE-D intra-data center optics are designed to support integration into a variety of different intra- and campus data center optical solutions. These solutions include digital signal processor (DSP)-based retimed optics, linear-drive pluggable optics (LPO), and co-packaged optics (CPO) for both serial and parallel fiber applications and distances ranging from 100 meters up to 10 kilometers.
Infinera will showcase its ICE-D intra-data center optics and comprehensive portfolio of open optical networking solutions in Booth 2825 in the Exhibit Hall at OFC 2024, to be held March 26-28 in San Diego, California.
Contacts:
Media:
Anna Vue
Tel. +1 (916) 595-8157
avue@infinera.com
Investors:
Amitabh Passi, Head of Investor Relations
Tel. +1 (669) 295-1489
apassi@infinera.com
About Infinera
Infinera is a global supplier of innovative open optical networking solutions and advanced optical semiconductors that enable carriers, cloud operators, governments, and enterprises to scale network bandwidth, accelerate service innovation, and automate network operations. Infinera solutions deliver industry-leading economics and performance in long-haul, submarine, data center interconnect, and metro transport applications. To learn more about Infinera, visit www.infinera.com, follow us on X and LinkedIn, and subscribe for updates.
Infinera and the Infinera logo are registered trademarks of Infinera Corporation.
This press release contains forward-looking statements, including but not limited to Infinera's ability to develop innovative technologies to provide cost- and power-efficient high-capacity intra-data center connectivity solutions, and the performance capabilities of Infinera’s ICE-D optics. These statements are not guarantees of results and should not be considered as an indication of future activity or future performance. Actual results may vary materially from these expectations as a result of various risks and uncertainties. Information about these risks and uncertainties, and other risks and uncertainties that affect Infinera’s business, is contained in the risk factors section and other sections of Infinera’s Quarterly Report on Form 10-Q for the Fiscal Quarter ended September 30, 2023 as filed with the SEC on February 29, 2024, as well as any subsequent reports filed with or furnished to the SEC. These reports are available on Infinera’s website at www.infinera.com and the SEC’s website at www.sec.gov. Forward-looking statements include statements regarding our expectations, beliefs, intentions, or strategies and can be identified by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will,” and “would” or similar words. Infinera assumes no obligation to, and does not currently intend to, update any such forward-looking statements.
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