Cando Corp., a manufacturer of optical communication devices and color filters, will expand into production of DWDM (dense wavelength division multiplexer) interfering filters, a key passive device for optical communications.

According to the Opto-Electronic & Systems Laboratories under the government-sponsored Industrial Technology Research Institute, the global demand for optical communication equipment is growing fast, due to worldwide broadening of bandwidth for telecommunication services. This in turn has increased demand for fiber-optic passive devices.

The global production of fiber-optic passive devices last year was valued at US$150 million, and the value is projected to increase by 158% from 1999 to US$387 million in 2003, the OESL indicated. However, Taiwan's global share of such production value in 2003 is estimated to be less than 2%, implying there is great market potential for local manufacturers.

After the OESL successfully developed a manufacturing process for 200GHz DWDM interfering filters, many local manufacturers have begun producing the filters.Cando will apply its advanced coating technology to production of DWDM interfering filters.