CST Global signs master purchase agreement with large North American network system supplier

Sivers IMA Holdings AB says that its subsidiary Compound Semiconductor Technologies Global Ltd (CST Global) of Hamilton International Technology Park, Blantyre, near Glasgow, Scotland, UK (an independent III-V optoelectronic foundry) has signed a master purchase agreement (MPA) with a large North American-based global provider of network systems. CST Global is to supply optoelectronic devices, essential for the deployment of next-generation cloud, data-center and hyperscale data-center applications. According to Cisco Global Cloud Index, the number of hyperscale data centers will grow from 259 at the end of 2015 to 485 by 2020.

The order value, over a two-year period, is expected to be worth $10m. The contract “confirms that we offer the right optoelectronic solutions, at the right time, to the rapidly growing, cloud, data-center market,” says Sivers IMA’s CEO Anders Storm. “It is one of several major growth markets that we have identified, driven by the communication and sensor society,” he adds. “This growth will be further supported by billions of connected items, due to the Internet of Things (IoT), as well as future 5G networks.”

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Hyperscale data centers contain at least 5000 servers each. Data centers of all sizes have massive amounts of fiber connections requiring the optoelectronic devices that CST Global supplies.

“This MPA is the first we have in place with a large North American network systems provider of such global reach and scale,” says Storm. “CST Global is amongst a select group of companies in the world capable of providing the optoelectronic devices required, in the necessary quantities,” he claims.