Microchip and Acacia Collaborate to Enable Optimized Terabit-Scale Data Center Interconnect Systems

Rhea-AI Summary

Microchip Technology (Nasdaq: MCHP) and Acacia have demonstrated the fourth generation of interoperability between Microchip's META-DX2 Ethernet PHY family and Acacia's Coherent Interconnect Module 8 (CIM 8). This collaboration aims to enable optimized terabit-scale data center interconnect systems, addressing the increasing bandwidth requirements between data centers. The interoperable devices offer three key benefits:

1. Optimized DCI bandwidth through Lambda Splitting feature
2. Reduced design risk with verified SerDes interoperation
3. Better support for full bandwidth, multi-rate operation

This partnership helps accelerate and optimize the build-out of cloud computing and AI-ready optical networks while reducing development risk for customers.

Positive

• Interoperability between Microchip's META-DX2 and Acacia's CIM 8 enables low-power, bandwidth-optimized solutions
• META-DX2+ PHY's Lambda Splitting feature maximizes capacity between data centers
• Verified SerDes interoperation up to 112G per lane reduces design validation requirements
• META-DX2 integrates 1.6T of encryption, port aggregation, and Lambda Splitting in a compact 112G PAM4 device

Negative

• None.

Insights

Tech Expert

This collaboration between Microchip and Acacia marks a significant advancement in data center interconnect (DCI) technology. The interoperability of Microchip's META-DX2 Ethernet PHY and Acacia's CIM 8 module addresses the growing bandwidth demands of modern data centers, particularly for AI and cloud computing applications.

Key technical benefits include:

• Optimized DCI bandwidth through Lambda Splitting, enabling configurations like 3x800 GbE over 2x1.2 Tbps waves
• Reduced design risk with verified SerDes interoperation at up to 112G per lane
• Support for full bandwidth, multi-rate operation from 100 GbE to 800 GbE

This partnership could potentially accelerate the deployment of high-capacity optical networks, important for handling the exponential growth in data traffic. For investors, this positions both companies favorably in the rapidly evolving data center and telecom infrastructure markets.

Market Research Analyst

The collaboration between Microchip and Acacia is strategically significant in the evolving data center market. With the global data center market projected to grow at a CAGR of 13.8% from 2021 to 2028, this partnership addresses a critical need for higher bandwidth and efficient interconnect solutions.

Key market implications:

• Potential for increased market share in the data center interconnect segment
• Competitive advantage through reduced time-to-market for customers
• Alignment with the trend towards AI and cloud computing, which require high-bandwidth solutions

For investors, this collaboration signals Microchip's commitment to innovation in a high-growth sector. However, the impact on short-term financials may be , as the adoption cycle for such technologies can be gradual in the telecom and data center industries.

The companies enable an interoperable coherent optics ecosystem that can help streamline the development of data center interconnect and metro transport systems

CHANDLER, Ariz., Aug. 13, 2024 (GLOBE NEWSWIRE) -- The latest data center architectures and increased traffic are driving higher bandwidth requirements between data centers. To address this challenge, system developers must streamline the development of a new generation of 1.2 Tbps (1.2T) transport solutions across a wide range of client configurations. This requires that today’s terabit-scale Ethernet PHY devices and coherent optical modules interoperate with each other in Data Center Interconnect (DCI) and metro transport networks. Microchip Technology (Nasdaq: MCHP) today announces that it has worked with Acacia to demonstrate the fourth generation of interoperability between Microchip’s META-DX2 Ethernet PHY family and Acacia’s Coherent Interconnect Module 8 (CIM 8).

The two companies’ interoperable devices enable low-power, bandwidth-optimized, scalable solutions for pluggable optics in DCI and transport networks. They deliver three key benefits as they jointly enable high-capacity, multi-rate muxponders for optical transport platforms:

• Optimized DCI bandwidth: The META-DX2 family, through its META-DX2+ PHY, uses its unique Lambda Splitting feature to split 400 GbE or 800 GbE clients across multiple wavelengths driven by the CIM8 modules. This maximizes the capacity between data centers in rate configurations such as 3x800 GbE over 2x1.2 Tbps waves or 5x400 GbE over 2x1.0 Tbps waves.
• Reduced design risk: Microchip and Acacia have jointly verified successful SerDes interoperation at up to 112G per lane for Ethernet and OTN clients, which reduces design validation and system qualification requirements.
• Better support for full bandwidth, multi-rate operation: The META-DX2+ crosspoint and gearbox functions enable 100 GbE to 800 GbE client modules to connect with full bandwidth to CIM8 modules.

“This interoperability extends a long-established partnership with Acacia to help accelerate and optimize the build-out of cloud computing and AI-ready optical networks while reducing development risk for our customers,” said Maher Fahmi, vice president for Microchip’s communications business unit. “Our META-DX2 is the first solution of its kind to integrate 1.6T of encryption, port aggregation and Lambda Splitting into the most compact 112G PAM4 device in the market.”

“With Acacia’s CIM 8 coherent modules verified to interoperate with Microchip’s META-DX2 devices, we see this as a robust solution that reduces system time-to-market,” said Markus Weber, senior director DSP product line management of Acacia. “The compact size and power efficiency of our CIM 8 coherent modules were designed to help network operators deploy and scale capacity of high-bandwidth DWDM connectivity between data centers and throughout transport networks.”

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About Microchip Technology:
Microchip Technology Inc. is a leading provider of smart, connected and secure embedded control and processing solutions. Its easy-to-use development tools and comprehensive product portfolio enable customers to create optimal designs which reduce risk while lowering total system cost and time to market. The company’s solutions serve approximately 123,000 customers across the industrial, automotive, consumer, aerospace and defense, communications and computing markets. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support along with dependable delivery and quality. For more information, visit the Microchip website at www.microchip.com.

Note: The Microchip name and logo and the Microchip logo are registered trademarks of Microchip Technology Incorporated in the U.S.A. and other countries.  All other trademarks mentioned herein are the property of their respective companies.

Editorial Contact:	Reader Inquiries:
Kim Dutton	1-888-624-7435
480-792-4386
kim.dutton@microchip.com

FAQ

What is the purpose of Microchip and Acacia's collaboration for data center interconnect systems?

The collaboration aims to enable optimized terabit-scale data center interconnect systems by demonstrating interoperability between Microchip's META-DX2 Ethernet PHY family and Acacia's Coherent Interconnect Module 8 (CIM 8), addressing increasing bandwidth requirements between data centers.

How does Microchip's META-DX2+ PHY optimize DCI bandwidth?

Microchip's META-DX2+ PHY uses its unique Lambda Splitting feature to split 400 GbE or 800 GbE clients across multiple wavelengths driven by the CIM8 modules, maximizing capacity between data centers in various rate configurations.

What are the key benefits of the Microchip (MCHP) and Acacia interoperable devices for DCI and transport networks?

The key benefits are: 1) Optimized DCI bandwidth through Lambda Splitting, 2) Reduced design risk with verified SerDes interoperation, and 3) Better support for full bandwidth, multi-rate operation enabling 100 GbE to 800 GbE client modules to connect with full bandwidth to CIM8 modules.

What is the significance of Microchip's META-DX2 integration capabilities?

Microchip's META-DX2 is the first solution to integrate 1.6T of encryption, port aggregation, and Lambda Splitting into the most compact 112G PAM4 device in the market, offering advanced functionality in a single package.