Corning scores MEMS property, buying balance of IntelliSense for $500 million
With initial investments dating back to June 1999, the two companies initiated a joint venture in early March of this year when the fiber giant purchased a one-third stake in IntelliSense (see IntelliSense, Corning Team for MEMS Development). The company's interest in the technology seemed lukewarm at the time—a Corning spokesperson interviewed at OFC said only that the company was investigating MEMS technology along with a variety of other approaches, declining to elaborate further. Now, it seems, Corning has seen which way the wind is blowing, and has snapped up the property.
"We intend to integrate IntelliSense's MEMS fabrication and design capability with Corning's component technology, packaging skills, manufacturing experience and market access," said Corning Division vice president for Optical Networking Devices, Mark Newhouse. "This transaction positions Corning to move rapidly into this product category."
The unanswered question in all of this MEMS frenzy is the issue of patents and licensing. Companies such as Lucent and Nortel's Xros (Sunnyvale, CA) have already established intellectual property holdings in the area of optical MEMS switching. It remains to be seen whether new players on the scene will have to work around existing patents, and whether, indeed, a viable alternative design exists.
IntelliSense will operate as a wholly owned subsidiary of Corning, with IntelliSense founder Fariborz Maseeh in the position of president and CEO. Subject to the usual approvals, the acquisition will close in the second quarter of 2000.
Edited by Kristin Lewotsky, Photonics Online