Infinera makes optical networking equipment and semiconductors that let telecom carriers, internet content providers, and other network operators transmit large amounts of data over fiber optic cables. Its core products are optical transport systems — hardware platforms that use dense wavelength division multiplexing (DWDM) technology to carry data across metro, long-haul, and subsea networks. A key differentiator is that Infinera designs and manufactures its own photonic integrated circuits (PICs) using indium phosphide semiconductor technology at its own fab in Silicon Valley. This vertical integration allows Infinera to embed its proprietary ICE optical engines across both its systems and a newer line of coherent optical pluggables — compact, interoperable optics modules that customers can plug into routers and switches without deploying a full system. The latest-generation ICE7 engine supports speeds up to 1.2 Tb/s per wavelength. Infinera sells to Tier 1 and Tier 2 carriers, hyperscalers, cable operators, subsea consortia, and government institutions, with hyperscalers approaching roughly half of product revenue. Hardware economics are driven by a line system/transponder cycle: Infinera deploys lower-margin optical line systems to win new routes, then generates higher-margin transponder sales as customers fill those routes over time. Infinera is also developing intra-data center optics for AI-driven connectivity, which could drive PIC volumes into the millions of units annually. In June 2024, Infinera entered into a merger agreement to be acquired by Nokia at $6.65 per share in cash.