Alphawave IP announces acquisition of DSP chip maker Banias Labs

On October 13, Alphawave IP announced on its official website that it would acquire Banias Labs, an Israeli optical digital signal processing chip developer, for about $240 million.

In addition, Alphawave revealed that it has negotiated a non-binding multi-year procurement framework with a leading North American hyperscaler to develop and sell a range of optical products and DSPs for Alphawave, including Banias Labs' coherent DSP technology, with sales likely over $300 million.

According to Alphawave, coherent optics is the next step in the evolution of optical solutions and is the cornerstone of the industry's efforts to achieve 800G and 1.6T Ethernet speeds, while maintaining the required coverage inside and outside the data center and significantly reducing power consumption.

Today, coherent technology is mainly used for connecting data centers and telecommunications over long distances of more than 100 kilometers. Banias Labs' optical DSP technology strengthens Alphawave's optical product roadmap by targeting the growing opportunity for coherent optical technologies within the data center.

With the acquisition of Banias, Alphawave is expanding its addressable market by providing next-generation coherent optical solutions for state-of-the-art data centers, said Tony Pialis, president and CEO of Alphawave.