Entering the photonics world of packaging
04/01/2001
By Mark Diorio
If you're like many engineers, you may have recently developed a curious interest in the photonics industry. This interest was likely piqued by the packaging technology employed for photonics or by the way packaging applies to optoelectronic components and modules. But, if you're like most of us, you probably don't have a good understanding of the photonics industry and its products, let alone the packaging opportunities that can be unearthed within.
Photonics, for the simple purpose of this discussion, refers to fiber optic communications. The manufacturing hierarchy of this industry looks essentially like a pyramid (Figure 1). In this context, there's clearly a link: component suppliers! If you are an equipment maker or a material supplier who provides products for component assembly, you undoubtedly know a great deal about component suppliers. This is even more the case if you provide assembly services for component assembly. Photonics packaging could very well be a freight train of opportunity for you to jump on to diversify your business outside the bounds of semiconductors. But this is where it gets tricky.
Variety and Complexity
In the optical component arena, there are a myriad of product types. In general, optical components can be classified as either passive or active. Under these classifications, there are a variety of component types, such as multiplexers, isolators, circulators, wavelength lockers and transmitters, amplifiers, routers, and switches. Add to this the varied configurations and technologies used by competing component makers and you have an abyss of component possibilities - all with little or no standardization between them.
 Figure 1. Photonics manufacturing hierarchy. |
And then there's a competitive issue to consider. Because every optical component supplier views its manufacturing technology as its competitive advantage, companies won't share the details of their processes. If a component or module supplier can make its product better, cheaper and more reliable than its competitors, then it can capture significant market share. Therefore, manufacturing design and technology is treated as intellectual property, and companies are hesitant to share it with equipment or material suppliers. Photonics companies are even more hesitant to outsource their assembly for fear of displaying their product's manufacturability in public domain. In essence, these concerns by optical component manufacturers mirror those of the semiconductor device makers of 30 years ago.
A Host of Competitors
So let's imagine that you are able to understand and navigate through the optical component product maze and have identified some opportunities. You've got company in this maze, and a lot of it! Not only are you apt to find yourself dealing with a cast of usual competitors, but there is competition from other industries, as well. Optoelectronic component and module assembly is not just an opportunity for the semiconductor packaging community - it's also an opportunity for those involved in disk drive assemblies and other electronic manufacturing service (EMS) companies. The competition may also include the very component makers you are trying to service, because many optoelectronic component makers are designing their own equipment and automation solutions in-house. So if your company provides assembly services, it's going to be up against some of the largest and most formidable EMS shops - those that have a tendency to throw large amounts of labor at a problem and bid with lower profit margins.
A Final Note
Are you ready to develop strategies and commit to this vast and brilliant opportunity? Perhaps you feel that you don't know enough yet to move forward and are thinking about hiring a consultant and buying some reports to educate yourself. Just be careful, because what makes you successful in the semiconductor market won't necessarily work in the photonics market. You'll discover that you are juggling apples and oranges...and they can be slippery.
AP
MARK DIORIO, chief executive officer, can be contacted at MTBSolutions Inc., 1630 Oakland Road, Suite A102, San Jose, CA 95131-2450; 408-441-2173; Fax: 408-441-9700; E-mail: [email protected].