Semtech Enabling the Future of Edge and Access Networks for the Cable Operators
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Insights
The introduction of Semtech's FiberEdge chipset, designed for the 100Gbps ZR Coherent-lite market, represents a notable shift in the telecommunications industry. This chipset is a response to the increasing demand for higher bandwidth and more efficient data transmission, particularly as networks transition to accommodate 5G-Advanced and potential 6G technologies. The chipset's focus on power efficiency is a critical factor, as energy consumption is a significant concern for network operators looking to scale their infrastructure.
With the GN1740 Linear Transimpedance Amplifier (TIA) and GN1796 Driver, Semtech is targeting the Cable Multiple Systems Operator (MSO) market, which is currently undergoing a substantial upgrade from 10Gbps to 100Gbps capabilities. This upgrade is essential for cable operators to remain competitive and support the exponential growth in digital content consumption. The move towards 100Gbps coherent dense wavelength division multiplexing (DWDM) technology is particularly significant, as it allows for the transmission of large volumes of data over long distances without compromising on speed or quality.
From an industry perspective, the adoption of such chipsets can lead to a reduction in operational costs due to lower power requirements and increased efficiency. In the long term, this could translate into improved profit margins for network operators and potentially lower prices for end-users.
Examining the market implications of Semtech's FiberEdge chipset reveals a strategic positioning within the 100Gbps ZR Coherent-lite optical module market. As the demand for higher bandwidth and efficient data transmission continues to grow, Semtech's innovation could capture a significant market share, especially among Cable MSOs looking to future-proof their networks.
Investors should note that the telecommunications equipment market is highly competitive, with rapid technological advancements. Semtech's entry into this space with a product that emphasizes power efficiency and performance could disrupt existing market dynamics and challenge incumbents. The chipset's compatibility with industrial temperatures and its design for ultra-low power consumption are competitive advantages that could drive adoption.
However, the success of this product will depend on its performance in real-world applications and its ability to integrate seamlessly with existing network infrastructure. Semtech's deep customer engagements and focus on market needs suggest a customer-centric approach that may facilitate the chipset's market acceptance and penetration.
The financial implications for Semtech and by extension its investors, hinge on the successful commercialization and widespread adoption of the FiberEdge chipset. As the company enters the sampling phase, the initial market response and feedback from Cable MSOs will be critical in assessing the chipset's potential revenue impact. The transition from 10Gbps to 100Gbps represents a substantial capital expenditure for network operators, which could result in significant sales for Semtech if the FiberEdge chipset is adopted as a key component in this upgrade.
Furthermore, the telecommunications industry's investment in infrastructure to support burgeoning technologies like 5G-Advanced and 6G suggests a long-term growth trajectory for suppliers of enabling technologies like Semtech. If the FiberEdge chipset delivers on its promises of power efficiency and performance, it could become a standard component in future network upgrades.
Investors should monitor Semtech's financial performance closely, looking for indicators such as customer adoption rates, production scalability and cost management. While the announcement is promising, the actual impact on Semtech's financials will become clearer as the product moves from sampling to full-scale deployment.
Semtech Sampling the Industry’s Lowest Power FiberEdge® Chipset for 100Gbps ZR Coherent-Lite Market
GN1740 is a quad FiberEdge Linear TIA & GN1796 is a quad FiberEdge Driver
Semtech FiberEdge GN1796 GN1740 (Graphic: Business Wire)
The Cable Multiple Systems Operator (MSO) market is facing a challenge. In the move from 10Gbps to 100Gbps, operators need to future-proof and stay relevant in the new digital content era. Enabling this data-transmission transition over long distances (80km and longer) requires a great deal of power efficiency for optical module components. Semtech is making this revolution possible through its new FiberEdge chipsets, dedicated to enabling this transition.
This transition is expected to begin next year and last over the next decade. “Semtech is here, now, to help cable operators prepare for this future,” said Raza Khan, director of marketing, wireless in Semtech’s Signal Integrity Products Group. “This enables cable operators to upgrade the bandwidth in their networks, supporting the rollout of 5G-Advanced and 6G networks.
The FiberEdge GN1740 Linear Transimpedance Amplifier (TIA) and GN1796 Driver are the pillars of this new chipset, embodying Semtech’s dedication to cutting-edge design and a relentless pursuit of power efficiency. Engineered for operations requiring ultra-low power consumption and compatibility with industrial temperatures, these components are at the forefront of enabling compact, energy-efficient solutions for 100Gbps QSFP28 Coherent-lite modules.
This development comes in response to the growing demand for 100Gbps ZR technology, essential for boosting bandwidth and service capabilities across various network infrastructures. The 100Gbps coherent dense wavelength division multiplexing (DWDM) technology, integral to these advancements, facilitates the transmission of large data volumes over considerable distances. It's particularly beneficial for applications in mobile mid-haul, backhaul, cable access, and business services, offering a substantial performance leap over traditional 10Gbps DWDM or 100Gbps grey fiber links.
“Semtech is very proud to have deep customer engagements that enable us to develop leading ICs for market needs. 100Gbps ZR is a new segment that we are very excited about. This will enable cable operators to future proof themselves in anticipation of this sea-change in transmission requirements. We have taken our time to differentiate and create a chipset product that will exceed customer power, cost and performance specifications,” said Raza Khan. “The chipset supports a total typical power consumption of 1.2W, while exceeding the performance requirements in a coherent system. The FiberEdge chipset is designed to be small in die size, enabling easy integration into a 100Gbps coherent optical subassembly (COSA).”
Semtech's commitment to innovation is further underscored by its comprehensive portfolio, including the 5G wireless Tri-Edge™ CDR and FiberEdge TIA ranges, catering to a wide array of network technology needs.
Visitors to Semtech’s private demo booth at OFC 2024 will have the opportunity to witness firsthand the capabilities of the latest FiberEdge chipset.
Learn more about Semtech’s FiberEdge portfolio here. For more information, visit www.semtech.com/optical.
Semtech’s 5G wireless Tri-Edge™ CDR portfolio includes:
- GN2255: Bidirectional 50Gbps PAM4 CDR with Integrated DML Driver
- GN2256: Bidirectional 50Gbps PAM4 CDR with Integrated EML / MZMDriver
Semtech’s 5G wireless FiberEdge® TIA portfolio includes:
- GN1300: 24-28Gbps TIA for PIN ROSA applications
- GN1400: 24-28Gbps TIA for APD system applications
- GN1700: 50Gbps linear PAM4 TIA
- New – GN1796: 4x25GB linear TIA for 100Gbps ZR Coherent Lite
- New – GN1740: 4x25GB driver for 100Gbps ZR Coherent Lite
Semtech’s comprehensive 5G wireless ClearEdge® CDR portfolio includes:
- GN2152: Bidirectional 24-28Gbps CDR with Integrated DML Driver
- GN2146: Bidirectional 24-28Gbps CDR with Integrated EML / MZM Driver
- GN2154: Bidirectional 24-28Gbps CDR with Integrated SE EML Driver
- GN2504C: Unidirectional Quad 25-28Gbps CDR
- GN2148: Single 24-28Gbps CDR with Integrated VCSEL Driver
- GN2149: Single 24-28Gbps CDR with Integrated TIA
About Semtech
Semtech Corporation (Nasdaq: SMTC) is a high-performance semiconductor, IoT systems and cloud connectivity service provider dedicated to delivering high-quality technology solutions that enable a smarter, more connected world. Our global teams are committed to empowering solution architects and application developers to develop breakthrough products for the infrastructure, industrial and consumer markets. To learn more about Semtech technology, visit us at Semtech.com or follow us on LinkedIn or X.
Forward-Looking and Cautionary Statements
All statements contained herein that are not statements of historical fact, including statements that use the words “will” or other similar words or expressions, that describe Semtech’s, or its management’s future plans, objectives or goals are “forward-looking statements” and are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of Semtech to be materially different from the historical results and/or from any future results or outcomes expressed or implied by such forward-looking statements. Such factors include those risk factors set forth in Semtech’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (www.sec.gov) on March 30, 2023 as such risk factors may be updated, amended or superseded from time to time by subsequent reports that Semtech files with the Securities and Exchange Commission. Semtech assumes no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release, except as required by law.
Semtech, the Semtech logo and, ClearEdge, FiberEdge, are registered trademarks or service marks of Semtech Corporation or its subsidiaries.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240326604395/en/
Kathrina Brigola
+1 604 233 7911
Source: Semtech Corporation
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