Asianometry From Fiber to AI: A Laser Giant’s Rebirth
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Mar 15, 2026 A laser and fiber optics maker rises from telecom bubble collapse to power the AI data center boom. The story traces origins in early optical research, wild market mania, and a brutal crash. Technical breakdowns explain why higher-power, low-noise lasers and polarization-maintaining fiber matter for modern CPO designs.
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Founders Spun Out From Nortel To Build JDS
- JDS founders left Nortel in 1981 to build fiber optic components after Nortel refused to make them in-house.
- The team grew into JDS, struck a 1990 deal with Furukawa, and evolved into a dominant DWDM supplier by the 1990s.
Merger Created A One Stop Fiber Optics Giant
- JDSU formed from a 1999 merger between JDS and Uniphase, combining passive and active fiber strengths into a one-stop supplier.
- The combined firm rapidly expanded via acquisitions and surged in valuation during the late-1990s telecom boom.
Bubble Valuations Drove Reckless Optical Acquisitions
- JDSU's market cap reached $110 billion in mid-2000 despite only $1.4 billion in trailing revenue, driven by speculative valuations.
- Management used inflated stock to buy rivals, culminating in wildly overpriced acquisitions like SDL for $41 billion.