Amphenol to acquire CommScope’s Mobile Business for $2.1B

Amphenol agreed to acquire CommScope’s mobile networks businesses for $2.1 billion in cash, subject to customary post-closing adjustments. The acquisition includes CommScope’s Outdoor Wireless Networks (OWN) segment and the Distributed Antenna Systems (DAS) business from CommScope’s Networking, Intelligent Cellular, and Security Solutions (NICS) segment. These businesses are projected to generate full-year 2024 sales of approximately $1.2 billion with EBITDA margins around 25%.

CommScope's Mobile Business offers a wide range of products and solutions, including:

• Antennas and active antennas: Designed for Base Stations (BS), Remote Radio Units (RRUs), and Massive MIMO applications.
• Active and passive DAS (Distributed Antenna System) components: For indoor and outdoor distributed antenna systems.
• Fiber and coaxial cables: For backhaul and fronthaul networks.
• Networking and switching products: For LTE and 5G networks, including baseband units, router switches, and network management systems.
• Small Cells: For indoor and outdoor small cell deployments.
• IoT solutions: For IoT connectivity and management.

In addition, CommScope's Mobile Business provides a range of services, including network planning, installation, commissioning, and maintenance/support. It's customers include:

• Mobile Network Operators (MNOs): such as Verizon, AT&T, T-Mobile, and Vodafone.
• Mobile Network Equipment Manufacturers (OEMs): such as Ericsson, Huawei, and Nokia.
• Tower Cos.: such as American Tower, Crown Castle, and SBA Communications.

Amphenol plans to finance the acquisition using a combination of cash on hand and debt. The deal is expected to be accretive to Amphenol’s Diluted Earnings Per Share in the first full year after closing, excluding acquisition-related costs. The transaction is anticipated to close in the first half of 2025, pending customary regulatory approvals and closing conditions.

Key Points:

• Acquisition Cost: $2.1 billion in cash.
• Business Segments: Outdoor Wireless Networks (OWN) and Distributed Antenna Systems (DAS).
• Financial Impact: Expected 2024 sales of $1.2 billion and EBITDA margins of 25%.
• Financing: Combination of cash on hand and debt.
• Closing Timeline: Expected in the first half of 2025.
• Earnings Impact: Accretive to Amphenol’s Diluted EPS in the first full year post-closing.

“We are excited by the prospect of adding CommScope’s mobile networks businesses and their approximately 4,000 talented employees to the Amphenol family,” said Amphenol President and Chief Executive Officer, R. Adam Norwitt. “CommScope provides mobile networks solutions, with advanced technologies in the areas of base station antennas and related interconnect solutions, as well as distributed antenna systems. In particular, we are encouraged that the businesses we are acquiring make up the former Andrew Corporation portfolio of products, a company with a rich history of innovation and technology leadership in the wireless industry. We look forward to supporting customers who are developing next-generation wireless networks around the world with these advanced solutions as well as our own existing complementary products. Finally, this acquisition further supports Amphenol’s long-term growth and balanced end market exposure across all areas of the electronics market.”

Over the years, CommScope's mobile business has grown through a series of strategic acquisitions over the yearss:

• Andrew Corporation (2011): CommScope acquired Andrew Corporation, a leading provider of wireless network infrastructure solutions, for $2.6 billion. This acquisition expanded CommScope's portfolio of products and solutions for wireless network operators.
• IBA GmbH (2013): CommScope acquired IBA GmbH, a German-based provider of passive wireless network infrastructure products, for an undisclosed amount. This acquisition strengthened CommScope's presence in the European market.
• RFMD (2015): CommScope acquired RFMD, a leading provider of radio frequency (RF) and microwave components, for $2.7 billion. This acquisition expanded CommScope's portfolio of RF and microwave products, which are used in wireless network infrastructure.
• Telxon Corporation (2015): CommScope acquired Telxon Corporation, a leading provider of wireless network infrastructure solutions, for an undisclosed amount. This acquisition expanded CommScope's portfolio of wireless network infrastructure products and solutions.

In addition to these acquisitions, CommScope has also invested in developing its own products and solutions for the mobile market, including:

• Small cells and femtocells: CommScope offers a range of small cell and femtocell products that enable wireless network operators to deploy dense networks and improve indoor coverage.
• Active antennas: CommScope's active antennas are used to amplify and direct wireless signals, improving network performance and efficiency.
• Microwave backhaul: CommScope's microwave backhaul solutions enable wireless network operators to transmit large amounts of data between cell sites, reducing latency and improving network performance.

Here are some key metrics from CommScope's recent annual reports:

Revenue:

2020: $1.35 billion ( Mobile segment revenue accounted for approximately 33% of the company's total revenue)

2019: $1.33 billion (Mobile segment revenue accounted for approximately 35% of the company's total revenue)

2018: $1.23 billion (Mobile segment revenue accounted for approximately 38% of the company's total revenue)

Operating Profit

2020: $274 million (Mobile segment operating profit accounted for approximately 20% of the company's total operating profit)

2019: $284 million (Mobile segment operating profit accounted for approximately 21% of the company's total operating profit)

2018: $275 million (Mobile segment operating profit accounted for approximately 22% of the company's total operating profit)

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Taiwan's GlobalWafer lands $400M in CHIPs Act funding for Texas fab

The U.S. Department of Commerce has announced a proposed investment of up to $400 million in direct funding under the CHIPS and Science Act to support GlobalWafers in constructing new wafer manufacturing facilities. This investment is expected to create 1,700 construction jobs and 880 manufacturing jobs, with total capital expenditures projected to be around $4 billion across Texas and Missouri.

Key Points

• Sherman, Texas: GlobalWafers will establish the first 300mm silicon wafer manufacturing facility in the U.S. for advanced chips, crucial for leading-edge, mature-node, and memory chips production.
• St. Peters, Missouri: A new facility will produce 300mm silicon-on-insulator (SOI) wafers, enhancing performance in harsh environments and serving the defense and aerospace sectors.
• Sherman, Texas Expansion: Conversion of part of the existing silicon epitaxy wafer manufacturing facility to produce 150mm and 200mm silicon carbide (SiC) epitaxy wafers, essential for high-voltage applications like electric vehicles and clean energy infrastructure.

The funding will also support the following workforce development initiatives:

• Texas: GlobalWafers is involved with the Southern Methodist University-led Texoma Tech Hub and the North Texas Semiconductor Workforce Development Consortium. They are also partnering with local schools to establish an electronics lab for targeted training.
• Missouri: MEMC is developing an apprenticeship program with the National Institute for Industry and Career Advancement (NIICA) and collaborating with St. Charles Community College on the MegaTech program for dual-enrolled high school students.

Overview of GlobalWafers

GlobalWafers is a Taiwan-based company that specializes in the production of silicon wafers, a critical component in the manufacturing of semiconductors and solar panels. Headquartered in Tainan, Taiwan, the company was founded in 1991 and has since grown to become one of the largest silicon wafer manufacturers in the world. GlobalWafers' major products include high-purity silicon wafers, epitaxial wafers, and solar wafers, which are used in a wide range of applications, including electronics, automotive, and renewable energy. The company operates a global network of manufacturing facilities, including those in Taiwan, Japan, South Korea, and the United States. In terms of financial performance, GlobalWafers has reported consistent growth in revenue and profitability in recent years, with revenue reaching NT$44.3 billion (approximately USD $1.5 billion) in 2020 and net income reaching NT$10.3 billion (approximately USD $350 million).

Update on CHIPs for America

With this funding, CHIPS for America has announced up to $30.1 billion in proposed funding across thirteen preliminary memoranda of terms aimed at revitalizing the U.S. semiconductor industry. These investments are expected to unlock more than $300 billion in public and private investment by the end of the decade, marking the largest investment in new production in the history of the U.S. semiconductor sector.

Earlier this year, Secretary Raimondo projected that the U.S. will produce 20% of the world’s leading-edge chips by the end of the decade, reducing vulnerability to supply chain disruptions. The Semiconductor Industry Association reported that America is on track to triple its domestic semiconductor manufacturing capacity from 2022 to 2032, reflecting the impact of the CHIPS and Science Act.

Key milestones:

• Four of the world’s five leading-edge semiconductor companies are expanding in the U.S., a unique position globally.
• The Department of Commerce has received over 670 statements of interest and more than 230 pre-applications and full applications for NOFO 1, along with 160 small supplier concept plans for NOFO Ongoing rigorous evaluation of applications aims to advance U.S. national and economic security, attract private capital, and deliver economic benefits.
• The recent announcement with GlobalWafers marks the thirteenth PMT announcement under the CHIPS and Science Act, with more expected throughout 2024.

These efforts underscore America’s commitment to bolstering its semiconductor industry and securing its innovation capacity against future disruptions. 

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Intel licenses 800G transceiver designs to Source Photonics

Source Photonics has entered into a licensing agreement with Intel to utilize Intel’s 800G transceiver designs, including its silicon photonics chipset. This collaboration will enable Source Photonics to deliver 800G OSFP transceivers, catering to large-scale data center and AI infrastructure deployments. By integrating Intel’s silicon photonics-based solutions with Source Photonics’ in-house EML-based 800G transceiver modules, customers will have access to two distinct 800G designs and manufacturing lines within one company. This partnership aims to enhance supply chain security and increase volume capacity.

“We are excited about this collaboration with Intel,” said John Wang, CEO of Source Photonics. “Our proven transceiver manufacturing expertise, combined with the highvolume, highly reliable silicon photonics technology from Intel, will create enormous value for our customers.”

“This collaboration between Intel and Source Photonics to leverage our transceiver design IP and bring to market products using Intel’s silicon photonics chipset is a validation of our new strategy,” said Amit Nagra, VP/GM, Integrated Photonics Solutions at Intel. “As we build upon our strong track record of silicon photonics shipments of over 8 million units to date and continue to develop new silicon photonics technology and products for the data center market, collaborations such as this become increasingly relevant.”

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Video: $30 Million Boost for AI Networking Software

Arrcus just closed a significant new investment of $30 million from Prosperity7 Ventures, NVIDIA, Lightspeed, Hitachi Ventures, Liberty Global, Clear Ventures, and General Catalyst.  Why the interest in a networking software start-up in Silicon Valley?

Shekar Ayyar, CEO from Arrcus explains:

- Arrcus networking through ArcOS enables efficient distributed compute infrastructure for AI processing

- ArcOS combined with Nvidia's Bluefield DPUs offloads networking functions, freeing up cycles for more efficient AI

- Arrcus extends AI architecture from clustered GPUs to racks, data centers, edge, telco infrastructure, and cloud through a flexible distributed networking fabric

https://youtu.be/IFWeuw_TkFQ

Have a tech update that you want to brief us on? Contact info@nextgeninfra.io!

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Netskope Integrates with OpenAI’s ChatGPT for Security

 Netskope, a leader in Secure Access Service Edge (SASE), has announced its integration with OpenAI’s ChatGPT Enterprise Compliance API. This collaboration aims to enhance security and compliance for enterprise organizations using generative AI (genAI) applications. Through this integration, the Netskope One platform provides advanced security features, including application visibility, robust policy enforcement, data security, and comprehensive security posture management.

Netskope said it has observed a significant increase in genAI application usage, tripling since last year, prompting organizations to reassess their data protection strategies. The integration with ChatGPT Enterprise aims to ensure compliance, mitigate data policy violations, and support secure usage of genAI applications.

Netskope’s API protection leverages major vendors’ APIs to provide visibility into cloud services, enforcing policies to control access and protect data. The integration is designed to help enterprise data within ChatGPT Enterprise remain compliant and secure.

“By integrating the Netskope One platform into OpenAI’s advanced capabilities in ChatGPT Enterprise, Netskope continues to lead in providing comprehensive security solutions for enterprises adopting genAI tools,” said Andy Horwitz, SVP, Global Partner Ecosystem, Netskope.

Key Features of the Integration:

• Compliance Standards: Enforces data loss prevention (DLP) and compliance policies with over 50 templates and 3,000+ data identifiers, supporting regulations like GDPR, HIPAA, and GLBA.

• Data Protection: Out-of-band visibility and control to protect sensitive information, using ML and OCR techniques for real-time data leakage prevention.

• Threat Protection: Advanced ML models for malware detection, complementing traditional security methods to identify threats in near real-time.

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Cornelis Networks Appoints Lisa Spelman as New CEO

Cornelis Networks has announced the appointment of Lisa Spelman as its new chief executive officer (CEO), succeeding Philip Murphy, who will now serve as president and chief operating officer (COO). This leadership transition marks a significant step for Cornelis Networks, a company based in Santa Clara, California, founded in 2015.

Cornelis Networks specializes in developing high-performance, low-power network processing solutions. Their products are designed to facilitate high-speed, secure, and programmable networking across various industries, including data centers, cloud, enterprise, and service provider markets.

Key Points:

• Leadership Transition: Lisa Spelman appointed as CEO; Philip Murphy to serve as president and COO.
• Company Focus: Specializes in high-performance, low-power network processing solutions.
• Strategic Partnership: Acquired Intel’s Omni-Path business in 2020, integrating FlexRAN software with Cornelis’ networking hardware.
• Market Impact: Enhances capabilities for data centers, cloud, enterprise, and service provider markets.

In 2020, Cornelis Networks acquired Intel’s Omni-Path business, which included Intel’s Omni-Path and True Scale products. This acquisition was part of a strategic effort to leverage Intel’s high-performance networking technology and enhance Cornelis Networks’ capabilities in developing advanced network processing solutions for high-performance computing (HPC), artificial intelligence (AI), and other demanding applications. The collaboration has allowed Cornelis Networks to integrate Intel’s FlexRAN software with their hardware, facilitating more efficient and flexible network processing solutions for edge computing and 5G networks.

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NTT DATA unveils Ultralight Edge AI platform

NTT DATA unveiled its new Edge AI platform to accelerate IT/OT convergence by bringing AI processing to the edge. 

NTT DATA’s Edge AI is an all-inclusive managed service platform that includes all the systems, tools and capabilities required for AI at the edge. It addresses data discovery, collection, integration, computation power, seamless connectivity and AI model management. It leverages lighter, cost-effective AI models, enabling it to run within a small compute box. Edge AI will perform specific tasks, such as supporting safety or operational efficiency, by collecting data from disparate devices across a network environment, enabling instantaneous and secure data processing and analytics.

The company says that while the spotlight has been on GenAI and Large Language Models (LLMs), these technologies are impractical for industries requiring real-time and local decision-making. NTT DATA’s Edge AI solution addresses this challenge by processing massive data sets on compact computing platforms, using smaller, more efficient machine learning models to deliver real-time AI insights.

The Edge AI platform, supported by NTT DATA’s consulting data scientists, managed services and global technical resources, addresses the shadow IoT challenge and AI infrastructure requirements. It does this by auto-discovering, unifying and processing data from IoT devices and IT assets across the organization, simplifying AI deployment and management.

“Our Edge AI platform represents a significant leap forward in driving AI at the edge securely and cost-effectively,” said Shahid Ahmed, Group Executive Vice President of Edge Services at NTT DATA. “By harmonizing data from disparate sensors and devices with lightweight AI models, powering all kinds of automation use-cases, NTT DATA’s Edge AI is pioneering industrial AI adoption as the first fully managed offering, helping organizations modernize with tailored, industry-specific solutions.”

Edge AI rounds out NTT DATA’s  Edge portfolio, which includes Enterprise IoT, Edge Compute, Private 5G and Device as a Service.

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