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Flextronics cuts back optical component operations

Mar 18, 2002

Flextronics International Ltd. is scaling back its optical component manufacturing with help from a California test measurement company.

Flextronics Photonics, a division of the Singapore-based EMS provider, has agreed to transfer certain elements of its optical component manufacturing to Newport Corp., an Irvine, Calif., supplier of test measurement and automation systems. Financial terms of the deal were not disclosed.

Under the pact, Flextronics will hand over its direct fiber coupling and solder attachment processes to Newport. The deal will enable Newport to develop a standard platform for automating key fiber-optics packaging processes for numerous applications. Flextronics will receive an upfront fee, royalties and preferential pricing for equipment developed. Newport will become the exclusive provider for all fiber optic alignment and attachment systems for Flextronics Photonics on a global basis.

"Newport is the right company to leverage our technology, deploy its methodology, and set the standard in developing and marketing manufacturing automation equipment for the fiber optics components market," said Michael E. Marks, Flextronics, chairman and chief executive in a statement. "Since Flextronics is not in the business of making manufacturing equipment, this agreement will allow us to obtain state-of-the-art manufacturing solutions based on our process technology."

Said Robert G. Deuster, Newport's chairman and chief executive in a statement, "We believe that Flextronics' Telcordia-qualified solder attachment process has the potential to reduce packaging costs in a variety of applications. We look forward to this partnership."

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