Sumitomo Electric Industries, Ltd.: Integrated Production of Optical Device and Optical Transceiver Started at SPEC in China

Sumitomo Electric Industries, Ltd. (SEI) (TOKYO: 5802) (ISIN:

JP3407400005), today announced the expansion of its optical device and

optical transceiver manufacturing at Sumitomo Electric Photo-Electronics

Components (Suzhou), Ltd. (SPEC) in China from April 2008.
SEI, an established manufacturer of optical components and modules

announced the addition of a new integrated production site in China. The

new facility adds an additional 155,000 Sq ft to its existing 5 optical

component/module manufacturing plants.
Fiber optic components such as optical devices and optical transceivers

not only have expanded to public communication applications and optical

LANs, but also to Fiber-to-the-Home (FTTH). This market continues to

grow at 15% per year. Under such circumstances SEI has continued

development and production of fiber optic components mainly in Japan for

more than 20 years. SEI has delivered high quality products to worldwide

customers during this period.
This time SEI has established SPEC in Suzhou, China and started

production this month in order to achieve stable supply of fiber optic

components and modules for the global optics market corresponding to the

market growth and need to satisfy worldwide customers with shorter lead

time.
Initially, SPEC began production of low bit rate optical transceivers

whose demand is the largest for public communications and optical LANs

applications. Later this year, SPEC will start the production of high

bit rate optical transceivers whose demand is expected to increase

dramatically in the future.
Increased production capacity brings following advantages.
(1) Integrated production
The production of the light source transmitter optical sub-assembly

(TOSA) and detector receiver optical sub-assembly (ROSA) at the upper

end of the process and the assembly and inspection of the optical

transceiver at final process have been conducted at separate factories

in Japan. The new facility expands SEI manufacturing capabilities to

deliver components and modules at one location.
(2) Shorter lead time
The additional manufacturing capabilities will enable shorter lead times

to meet the demands of customers looking to reduce their inventory

levels.
(3) Increased production capacity
As SEI continues the production at the factories in Japan, the SPEC will

increase production capacity by 50%.
About Sumitomo Electric Industries, Ltd.
Sumitomo Electric Industries, Ltd. (SEI) designs, manufactures and sells

optical fiber, cable and components, advanced electronic devices, and

automotive parts. Through a successful strategy of research and

diversification, SEI has become one of the world´s leading companies at

the forefront of the revolution in information and communications. The

company has operations around the world in more than 30 countries and

employs over 130,000 people. SEI reported group net sales of USD 20

billion for the year ended March 2007. www.sei.co.jp/index.en.html
About ExceLight Communications
ExceLight Communications, Inc., a subsidiary of Sumitomo Electric

Industries, is a leading provider of optical components and modules to

the telecom, CATV, broadband, and data communications markets. ExceLight

offers a comprehensive array of transceivers, transmitters, receivers

lasers, photodiodes, and passive components.
Sumitomo´s world-class research and manufacturing capabilities in

optical technology continue to expand and strengthen the product

portfolio while maintaining industry leading levels of reliability.

ExceLight focuses on the "Americas" (geographically) and the well-established global presence of Sumitomo

allows integrated support to customer facilities throughout the world. www.excelight.com