Lucent Expands Optoelectronics Components Operations

ALLENTOWN, PA, Feb. 15 -- Lucent Technologies Microelectronics Group has announced a $30-million expansion of its optoelectronics components operations. The expansion is expected to quadruple output this year to meet the growing market demand for components used in high-speed optical communications networks.

According to industry analysts, the market for fiber-optic telecommunications components was $5.5 billion in 1999 and grew more than 40 percent over the previous year. Lucent's optoelectronics business grew 83 percent last year, including internal sales.

"Our expansion program will dramatically boost our ability to meet the increasing demand for optical networking components," said Dan DiLeo, president of the Optoelectronics division of Lucent's Microelectronics Group. "Coupled with our industry-leading automated processes, this expansion will better position us to meet our customers' needs in a capacity-constrained market."

The expansion program includes a new 143,000 square-foot building at Lucent's 200-acre optoelectronics facility in Breinigsville, PA. Lucent's optoelectronics facility in nearby Reading will undergo a $6-million renovation. According to Lucent, the expansion is expected to create at least 500 new jobs in various company locations this year. With the bulk of new construction completed in Breinigsville, Lucent expects to begin phasing in manufacturing operations in March.

Last week, Lucent announced plans to acquire Ortel Corporation, a leading supplier of optoelectronics components for broadband cable television networks. Lucent also will invest approximately $1 billion in optoelectronics R&D over the next three years in an effort to ensure a steady stream of optoelectronics innovations.

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