Photonics: The New Milan Fashion

Dr. Flavio Fontana

Despite the traditional impairments of the Italian economy, the Milan area is gaining some visibility in the photonics business, and it is working to configure itself as a possible "Optics Valley" south of the Alps.

Corning Inc. has closed the $3.6 billion acquisition of Optical Technology, a high-tech company formerly owned by Pirelli Cavi & Sistemi spa (90 percent) and Cisco Systems (10 percent). Optical Technology's laboratories are moving to a site on the outskirts of Milan, where new space is already available for future expansions.

Besides Pirelli and Corning -- which is expected to maintain and expand its new local operations -- the recently established Cisco Photonics contributes to the creation of a lively environment for photonics innovation. Analysts expect other foreign companies to settle in the same zone, which offers easy access to top-grade academic research and specialized professional skills at a cost still acceptable to US investors.

Photonics in Italy

The acquisition gives Corning new research and manufacturing resources in ultrafast lithium niobate modulators, 980-nm amplifier pump lasers, add/drop filters, phase modulators and acousto-optic filters, which have proved useful in long-haul transmission systems and cross-connects.

Corning paid $3.4 billion in cash for the business unit and has agreed to pay an additional $180 million after the firm achieves a certain number of business objectives. For Pirelli, the financial result will allow upgrades and expansions in other sectors of photonics, such as optical fibers and submarine telecom.