Zarlink Semiconductor Inc.
TSX : ZL
OTC Bulletin Board : ZARLF.OB

Zarlink Semiconductor Inc.

November 16, 2009 09:30 ET

Zarlink Ultra-Compact Optical Engine Enables Low Power Interconnects for Green Data Centers

- Zarlink's 40-120 Gbps optical engine multi-chip module slashes size and power consumption and improves signal integrity of data center interconnects

OTTAWA, ONTARIO--(Marketwire - Nov. 16, 2009) - Zarlink Semiconductor (TSX:ZL)(OTCBB:ZARLF.OB)today announced sampling of the Zarlink Optical Engine (ZOE), an innovative scalable-bandwidth multi-chip carrier for dense, compact array-fiber transceivers. The ZOE platform comprises the multi-channel optical light source, optical detector chips, array electronic transmitter, and receiver ICs precision-mounted on a flip-chip glass sub-component carrier with an external array-fiber coupler.

The ZOE platform includes scalable products that terminate 40-120 Gbps full bidirectional optical links or array unidirectional (e.g. HDMI) or serial function. ZOE has outstanding signal integrity, data density and power efficiency. For example, in 4x10 Gbps applications the ZOE 7x7 mm surface-mountable chip carrier dissipates 480 milliwatts (mW) while delivering the industry's highest footprint density per gigabit.

"ZOE meets an immediate demand for low-power, highly efficient interconnect solutions to support the evolution of 'green' data centers and computer clusters," said Mauricio Peres, product line director with Zarlink's Optical Products group. "We are expanding our optical portfolio with new dense multichip products that address key customer concerns, such as signal integrity for multiple 10G links, power per bit and cost per bit. The ZOE platform initially targets InfiniBand QDR and 40G/100G Ethernet applications, and will become the industry standard array-fiber optical sub-assembly."

For environmental and operating cost reasons, data centers require improved optical products for equipment interconnects that consume less power and efficiently support higher data rate performance. A 40 Gbps bidirectional ZOE integrates all key array-optical and array-electronic components on chip carrier; setting a new performance benchmark in the 10-12 mW of power consumption per Gigabit and providing a vast improvement over previous data center interconnect products.

"ZOE's precision aligned optical source and receive arrays enable simple optical coupling to standard fiber ribbon cables in a proven-reliable non-hermetic package," said Bertil Kronlund, product line manager with Zarlink's Optical Communications product group. "ZOE is the industry's first optical engine produced using wafer-scale assembly. The precision of the flip chip assembly approach enables ultra-compact size and form factors supporting multi-channel data rates to 25 Gbps per channel up to 300 Gbps aggregate of full bidirectional data traffic."

ZOE is attached to the customers' circuit board using solder bumps. ZOE targets array-active optical cables and array-receptacle transceivers for InfiniBand QDR (4x10 Gbps), 40/100 Gigabit Ethernet, 12-channel InfiniBand CXP, proprietary high-speed network protocols, CFP short reach, Display Port, and other PC platform applications, such as Intel's Light Peak.

ZOE evaluation kits for 4x10G applications are available now through Zarlink's optical product group sales team (http://www.zarlink.com/zarlink/hs/sales_support_14588.htm).

Editor's Note: A high-resolution photo of the ZOE platform and simplified block diagram are available at http://www.zarlink.com/zarlink/hs/5946.htm.

About Zarlink Semiconductor

For over 30 years, Zarlink Semiconductor has delivered semiconductor solutions that drive the capabilities of voice, enterprise, broadband and wireless communications. The Company's success is built on its technology strengths including voice and data networks, optoelectronics and ultra low-power communications. For more information, visit www.zarlink.com.

Shareholders and other individuals wishing to receive, free of charge, copies of the reports filed with the U.S. Securities and Exchange Commission and Regulatory Authorities, should visit the Company's web site at www.zarlink.com or contact Investor Relations.

Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such risks, uncertainties and assumptions include, among others, the following: our dependence on the successful development and market introduction of new products; our ability to integrate any business, technologies, product lines or services that we have or will acquire; our dependence on revenue generation from our legacy products in order to fund development of our new products; current market conditions, including the lack of liquidity in the markets and economic slowdown, may increase our operating costs or reduce our revenue, thereby negatively impacting our operating results; our ability to operate profitably and generate positive cash flows in the future; the impact of the current economic crisis on our suppliers and customers and our ability to transfer parts to other suppliers; our dependence on our foundry suppliers and third-party subcontractors; order cancellations and deferrals by our customers; our substantial indebtedness could adversely affect our financial position; the cost and accounting implications of compliance with new accounting standards; and other factors referenced in our Annual Report on Form 20-F. Investors are encouraged to consider the risks detailed in this filing.

Zarlink and the Zarlink Semiconductor logo are trademarks of Zarlink Semiconductor Inc.

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