Company Will Deliver High-Speed Semiconductor Solutions for Metro and Access Networks To China's No. 1 Network Equipment Supplier
Agere Systems announced today that Huawei Technologies Co., Ltd., the No. 1 network equipment supplier in China, will purchase a full suite of Agere's integrated circuits (ICs) for use in high-speed optical networking systems for metropolitan and access networks. Huawei, the fastest growing equipment supplier in the world, is deploying its optical systems in networks across Asia, Europe, Africa and South America.
Under the multi-million dollar deal, Agere will provide chips for line cards, which handle multiple networking protocols, channels, reaches and rates in optical transport systems. Offering a host of leading-edge features and functions, the Agere devices are designed to drive equipment costs down while improving the functionality of today's high-speed optical metro and access networks.
"Huawei has proven its ability to bring high-speed, low cost networking to the metro and access segments as the fastest growing equipment provider," said Mark Granahan, vice president for access and transport products at Agere Systems. "As the leading supplier of networking ICs to Huawei, we are proud to help support their success. The Agere solutions will help Huawei provide systems to their customers that enable new services at the lowest initial and ongoing cost and provide a seamless path to tomorrow's networks using Agere's flexible product portfolio."
Huawei is the leading Chinese vendor for communications equipment and network solutions for telecom carriers in fixed, mobile and data communications networks. A recent RHK report ranked Huawei No. 1 in the Asia-Pacific market with 15.4 percent market share in optical transport products in 2001. According to leading analyst firm RHK, China is the largest telecom market in the Asia-Pacific market in 2002 and is expected to continue to be the largest through at least 2006. With a growing global presence, Huawei's sales outside China surged 156% last year.
"Huawei was seeking a long-term strategic partner in the industry to provide transport solutions to help us co-develop the worldwide market. Agere came out on top by offering low cost, highly reliable and feature-rich solutions that dramatically shorten the time-to-market for our Optix(TM) 2.5G,10G SDH and Optix(TM) Metro Systems," said Pin-An Zhang, Huawei senior vice president and general manager of the company's optical networking division. "With Agere's solutions we'll be able to help our customers maximize their network equipment investments by enabling multiple services at the lowest cost." Huawei plans to conduct field trials of equipment using Agere's products with leading international telecom carriers.
Agere will provide Huawei with seven devices from Agere's broad portfolio of optical networking ICs including framers, pointer-processors, cross-connects, data engines and mixed-signal transceivers. Among the optical transport chips Agere is supplying to Huawei are the MARS 2.5G and MARS 10G framers, two key elements in the company's newly announced family of highly integrated systems-on-chip (SoC) for optical transport. These Agere chips comprise the industry's most complete line card subsystems that can support all existing functions, applications, rates and protocols used in legacy and new equipment for metro and access networks.
The deal with Huawei for Agere's optical transport ICs builds upon recent design wins for Agere's market-leading network aggregation and switching chips. "This announcement extends Agere's already strong relationship with Huawei into other key networking application and product areas," said Frank Yi Liang, China country manager for Agere Systems. "Because of our extensive knowledge of optical networking technologies and our broad portfolio of intellectual property, we are the only company that can offer a complete line card solution." Huawei is also using Agere's 8207 CelXpres(TM) asynchronous transfer mode (ATM) switching chip in its multi-service access platform technology and Agere's ATM port controller (APC) processing chip in its broadband multi-service and access platforms.
The Agere solutions address optical line and switch fabric card, multiplexing and digital cross connect card requirements for synchronous digital hierarchy (SDH), multi-service transport platforms (MSTP) and DWDM platforms supporting SONET/SDH services including OC-3, OC-12, OC-48, and OC-192 and data services such as ATM, packet over SONET (PoS) and gigabit Ethernet over SONET (GEoS).
Agere Systems is a premier provider of advanced integrated circuit solutions that access, move and store network information. Agere's access portfolio enables seamless network access and Internet connectivity through its industry-leading WiFi/802.11 solutions for wireless LANs and computing applications, as well as its GPRS offering for data-capable cellular phones. The company also provides custom and standard multi-service networking solutions, such as broadband Ethernet-over-SONET/SDH components and wireless infrastructure chips, to move information across metro, access and enterprise networks. Agere is the market leader in providing integrated circuits such as read-channel chips, preamplifiers and system-on-a-chip solutions for high-density storage applications. Agere's customers include the leading PC manufacturers, wireless terminal providers, network equipment suppliers and hard-disk drive providers. More information about Agere Systems is available from its Web site at http://www.agere.com/.
This release contains forward-looking statements based on information available to Agere as of the date hereof. Agere's actual results could differ materially from the results stated or implied by such forward-looking statements due to a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, customer demand for our products and services, control of costs and expenses, timely completion of employment reductions and other restructuring and consolidation activities, price and product competition, keeping pace with technological change, dependence on new product development, reliance on major customers and suppliers, availability of manufacturing capacity, components and materials, general industry and market conditions and general domestic and international economic conditions including interest rate and currency exchange rate fluctuations. For a further discussion of these and other risks and uncertainties, see our annual report on Form 10-K for the fiscal year ended September 30, 2001, and report on Form 10-Q for the period ending June 30, 2002. Agere disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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Contact: Lori Higa, office, +1-408-980-3860, or cellular, +1-650-619-7538, or higa@agere.com, or Steven Goldsmith, office, +1-610-712-6737, or mobile, +1-484-357-0216, or goldsmith@agere.com, both of Agere Systems
Website: http://www.agere.com/
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