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Lucent and DiCon Announced a Joint Venture for Passive-Optical Components in 2000

Lucent and DiCon’s 2000 venture was designed to combine automated optical packaging with passive-optics products for fiber amplifiers, but its planned launch is not confirmed by the available coverage.
From TheFinanceBase Team2 min to read
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Lucent Technologies and DiCon Fiberoptics announced LD Fiberoptics LLC in February 2000 to develop integrated passive-optical components for fiber-amplifier applications. The plan paired Lucent’s automated packaging and testing capabilities with DiCon’s passive-optics products, with DiCon handling OEM distribution and Lucent planning to incorporate the products into its optical-fiber amplifier line. The announcement described a target market introduction by fall 2000; it does not establish that the launch occurred.

What the companies announced

The venture was to be based in Richmond, California. EE Times reported that Lucent would hold a controlling 51% stake and DiCon 49%; the companies did not disclose financial terms. EE Times

The partnership followed a product-development agreement signed in September 1999. That agreement addressed automating production of a family of integrated, multifunctional passive components for fiber-amplifier applications. In contemporaneous coverage, the companies targeted market introduction by fall 2000. That date was a stated goal, not confirmation of a commercial release. Photonics Spectra

How the partnership was meant to work

Partner Announced contribution and role
Lucent Technologies Automated optical packaging and testing capabilities; planned to integrate the venture’s products into its optical-fiber amplifier line. EE Times
DiCon Fiberoptics Passive-optics products; planned to distribute LD Fiberoptics products to OEMs. EE Times

The companies presented this combination as a way to make integrated components that could provide more system functions at lower cost. These were the venture’s stated aims, not independently verified performance or cost results. Lucent executive Dan DiLeo described a gap between rising demand for passive-optical components and the industry’s ability to manufacture them efficiently. DiCon president Ho-Shang Lee pointed to the combination of DiCon’s thin-film-coating technology and precision optics with Lucent’s packaging processes as an intended competitive advantage. Both remarks appeared as executive claims in the contemporaneous announcement coverage. EE Times

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What passive-optical components do

In the context of the announcement, passive components were intended to perform functions on optical signals without generating power. A later DiCon filing describes the broader category as including components that guide, mix, filter, route, adjust, or stabilize optical signals. It lists communications products such as wavelength-division multiplexers, amplifier components, switches, attenuators, and MEMS devices and modules, as well as measurement products including variable attenuators, tunable filters, and test instruments. Those are DiCon’s broader product categories in a 2006 filing; the filing does not show that every listed product was made by LD Fiberoptics. DiCon filing with the SEC (2006)

The market context in the 2000 report was dense wavelength-division multiplexing (DWDM), also called wavelength-division multiplexing (WDM). It allows signals from multiple sources to travel over one optical fiber on separate wavelengths. Passive components can support the handling of those optical signals, while fiber amplifiers boost signals in optical networks. EE Times

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What the market estimates meant at the time

EE Times reported industry estimates that the passive-optical components market was $5 billion in 2000, with a forecast of more than $21 billion over the following five years. Those were estimates and a forecast reported at the time, not verified outcomes or current market figures. EE Times

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What is known about the venture’s later history

The available coverage establishes the February 2000 announcement, the companies’ intended roles, and the fall 2000 target. It does not establish whether LD Fiberoptics launched products, how long it operated, or whether the venture remains active. The launch target should therefore not be treated as evidence of an actual launch.

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