SMALL TECH WORLD IN BRIEF
Aug. 29, 2001

REPORT: MEMS AN OASIS IN TELECOM DROUGHT

MEMS manufacturers have suffered some cuts in jobs and funding, but small tech has managed to avoid the brunt of the troubles facing the telecommunications market, according to a new report.

Cahners In-Stat Group said MEMS is attracting record investment from venture capitalists, customers are enthusiastic in their evaluations and companies are moving toward production ramp-up late this year and early next year.

The report projects sales of MEMS for use in optical networking will rise from $67 million this year to $2.3 billion in 2005.

The report, “MEMS and Optical Networks: Oasis or Mirage,” include profiles of key players, forecasts in product unit sales and revenues through 2005. The price is $3,495.

NANOTECH MAY BENEFIT FROM ENERGY FIRM ACQUISITION

The purchase of one energy and oil conversion company by another is expected to speed the development of nanotechnology in the field.

Headwaters Inc. of Draper, Utah, announced Wednesday it had completed the acquisition of Hydrocarbon Technologies Inc. (HTI) of Lawrenceville, N.J. The deal is estimated to be worth $17 million.

Headwaters officials said HTI offers patented advancements in nanocatalyst technology, which uses small tech to improve performance and reduce precious metal consumption in petrochemical processes and automotive emissions control.

A BRAIN CHIP? NOT YET, BUT IT’S FOOD FOR THOUGHT

Scientists say they have wired up the first conducting nerve chip, a feat that in the distant future could lead to brain-repair chips, advanced biosensors and biological computers, according to report released this week in the journal Nature.

Researchers at Germany’s Max Planck Institute for Biochemistry placed snail nerve cells on a silicon chip, fencing them in place with microscopic plastic pegs. The cells grew connections with each other and the chip, the report said.

The researchers applied electrical pulses to the chips, which passed from one cell to another and back to the chip to trip a silicon switch.

Neuroprosthetic implants remain a long way off, but the scientists hope a more near-term benefit of the nerve network is learning how to mimic the brain’s properties, Nature said.

INVESTOR FORUM PART OF OPTICAL CONFERENCE

What organizers call the first optical component investor forum will be held during the European Conference on Optical Communication (ECOC).

The forum, dubbed Liquid Europe, is being organized by the ECOC and RHK Inc., a market research and analysis firm for the telecom industry.

The event will include more than 30 chief executives from optical startups, who will outline their business strategies, technology direction and product plans. RHK also will present its latest forecasts and analysis of the optical component sector.

The conference will be held Oct. 1-3 in Amsterdam.

INTERSTATE ELECTRONICS NAMES PRESIDENT

Robert Huffman has been named president of L-3 Communications’ Interstate Electronics Corp. (IEC) division, a leader in MEMS and other products used in military and industrial applications.

Huffman, who replaces the retiring Richard Tierney, has served as IEC’s vice president of marketing and engineering. Before that, he was operations manager for Figgie Medical Systems, a high-performance equipment maker of respiratory systems.

MEDTRONIC GETS APPROVAL FOR DEVICE, ACQUISITION

Two moves on Tuesday moved Medtronic Inc. closer to commercial applications of small tech solutions for heart failure and diabetes.

The U.S. Food and Drug Administration approved the Minneapolis-based medical device maker’s InSync implantable pacemaker. InSync uses a MEMS accelerometer to deliver continuous electricity to compensate for low-functioning hearts.

Medtronic also announced it had completed the acquisition of MiniMed Inc. and Medical Research Group (MRG) Inc. The deals are valued at about $3.8 billion.

MiniMed makes insulin pumps for diabetics and is testing small tech sensors for an implantable device that will monitor and regulate glucose levels. The company owns 8 percent of MRG, which does the basic sensor research and licenses its technology to MiniMed.

The companies will be combined to create Medtronic MiniMed and will be based in Northridge, Calif.


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By Jeff Karoub, 734-528-6291.

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