The stock of Microchip Technology Inc. (NASDAQ:MCHP) is displaying great strength and is holding strong at current levels. The stock is currently ast $80.37 and is close to its 200-day MA of $82.29.
Microchip Technology through its owned subsidiary Microsemi Corporation as well as in partnership with Acacia Communications, Inc. (NASDAQ:ACIA) has shown interoperability between Microchip’s DIGI-G5 Optical Transport Network (OTN) processor together with Acacia’s AC1200 coherent module. The primary objective for the collaboration is to enable the first flexible rate optical transmission up to 600G.
The Transition to Flexible Transmission Rates
The optical networks are making a transition from the 100G to flexible transmission rates which scale up to 600G. The collaboration is thereby to enable the flexible rate system architectures with a very established ecosystem in support of the transition.
Enabling the transition, the service providers could unfold higher bandwidth Ethernet connectivity at a rate that is faster as well as lower cost with the Optical Internetworking Forum’s (OIF) FlexE protocol. The protocol was meant to provide 30% greater bandwidth efficiency when compared to the traditional Ethernet link aggregation (LAG).
Microchip’s DIGI-G5 mainly delivers on silicon and the software to launch new terabit scale line cards with the optical interfaces for all packet-optical transport platforms. In combination with AC1200, the next generation architectures will support the growing demand for metro as well as data Centre interconnection networks that require 100G+ connectivity.
The Potential is there
As the DIGI-G5 processes the client traffic into OTN, the 1.2T AC1200 on the line card will also enable the OTN connections over 2-600G tunable DWDM wavelengths with a flexible 3D shaping features. The features such as fractional quadrature amplitude modulation (QAM) as well as adaptive baud rate maximize transmission reach n capacity to approach theoretical limits in power efficient manner.
Benny Mikkelsen, Chief Technology Officer of Acacia Communications, said that apart from the density and the high capacity, the AC1200 module will introduce several crucial other features which are designed to enable the network operators to optimize capacity, reach as well as spectral efficiency which will then make flexible transmission solutions to 600G just but a reality. The collaboration is believed to help in enabling the market scale the network capacity with improved efficiency.