11/26/2012 12:00:00 AM
U.S. Companies Capture 25% in Photonics Sales
Companies headquartered in North America capture nearly 10% of global photonics component revenues, although the share jumps to 25% if displays are excluded from the estimate, according to recent findings by OIDA. That position is highly diversified across many photonics technologies and industry sectors, providing some cushion through economic cycles. This contrasts with the combined photonics companies in each of Taiwan, Japan, and Korea, which are expecting slower growth due to their exposure to slow markets for displays and LEDs.
OIDA estimates that European companies capture about 6% of overall component revenues, or 14% of revenues if displays are excluded. Companies headquartered in Asia capture nearly all of the remaining share.
The global market for passive optical components is an estimated $14 billion, with North American companies capturing about 22% of that, according to OIDA. One-half of the revenues are earned by about 20 companies, each with optics sales greater than $100 million. The other half is earned by hundreds of companies, mostly making just a few million dollars per year.
Tom Hausken presented the findings at a corporate networking reception sponsored by Corning, at OSA’s Frontiers in Optics meeting in Rochester, NY in October. The session also included an interview with Dr. Michael Cumbo, President of IDEX Optics and Photonics.
A video of the OIDA presentation is available to OIDA members, and more details will be documented in an upcoming OIDA market report, coming later this year. Visit the OIDA Video Library page soon to view the video.
OIDA submitted a response in October to NIST regarding the proposed National Network for Manufacturing Innovation (NNMI).
OIDA suggested the formation of a Photonics Institute as one of 15 institutes of the NNMI. Foundries for photonic integration would form the “center of gravity” of the institute. The foundries would include both silicon photonics and InP-based devices. Each technology requires substantial process development to bring them to full commercial-grade production, therefore creating a real-world challenge to be solved. The barrier to entry for such commercial-grade process development is high, in terms of both time and money. A concentrated effort is therefore necessary if the U.S. government wants to establish domestic capability in this technology.
The Photonics Institute would also create a program in manufacturing workforce training that would span from management to technicians. It would leverage existing resources, but establish some new programs to fill gaps that exist today.
The Obama Administration announced the plan in March, proposing $1 billion for the 15 institutes. In August, the government announced a first, pilot institute, the National Additive Manufacturing Innovation Institute, based in Ohio.
OIDA’s document is not a formal proposal. NIST’s recent solicitation was not a request for proposals, but for ideas about how the NNMI would be structured. If the NNMI goes forward, a more formal proposal process would follow. Meanwhile, OIDA will continue to develop the case for U.S. government support in this and other proposed programs.
For more information, please contact Tom Hausken.
OIDA Staffing Updates
Last month’s newsletter noted a change in the OIDA Advisory Council chair, from Rich Grzybowski to Claudio Mazzali. Rich is no longer with Corning as he has accepted a new position at Photonics Controls, LLC in the role of Chief Technology Officer. Photonics Controls, LLC is an engineering design services company located in Horseheads, NY. We wish Rich well in his new position, and we look forward to seeing him at the next industry event.
Claudio Mazzali was assigned by Corning to be its new representative on the OIDA board following Rich’s departure. The board voted to elevate Claudio to be the new chair, as well.
Mazzali is the Business Technology Director, Optical Fiber at Corning. In this role, Mazzali leads the product and process development as well as some new business development initiatives for Corning Optical Fiber.
Mazzali joined Corning in 1999 at the Brazilian regional office as an optical communications specialist, and later became technical manager for Corning Optical Fiber in Latin America. In 2001, Mazzali was transferred to Corning, N.Y., where he assumed the position of strategic alliances manager, responsible for establishing partnerships and collaborations with system houses.
Mazzali has held multiple positions in Corning Optical Fiber including product line manager for highdata-rate and submarine products, as well as the manager for the Global Market Development & Analysis team. More recently, Mazzali started the New Business & Technology Development group, whose mission is to expand ongoing initiatives in optical fiber innovation focusing on uncovering adjacent opportunities to support emerging applications.
Mazzali has been a participant in previous OIDA activities and we look forward to working with him as the new chair!
In other changes this year, Ganesh Gopalakrishnan left his technical consulting position at the end of July, following the successful delivery of several new programs and workshops on photonic integration, optoelectronic manufacturing, and optical communications. OIDA is continuing these efforts, and OIDA is in a stronger position as a result of Ganesh’s time at OIDA. We appreciate Ganesh’s service now that OIDA is more firmly transitioned to OSA management.
OIDA currently receives support from many staff in a team effort that leverages OSA’s experience. Some key names are: Tom Hausken and Brooke Hirsch (lead contacts), Missy Russell (membership), Laura Kolton (public policy), Matt Berzok (public policy consultant), and Liz Rogan (OSA CEO). The staff also draws on other OSA staff and outside contractors for help with specific tasks.
Staff Contact Information: