ClariPhy builts integrated circuits which it claims improves the efficiency and capacity of high bandwidth networks.
It looks like Nokia Siemens is interested in ClariPhy's development of integrated single chip CMOS integrated circuits for optical networks digital signaling processing.
This chips integrate the multiple tasks required by transport networks. Your average network needs to convert analogue signals from optical sensors to digital, digital manipulation, and back to analogue fast and these chips are supposed to be jolly quick.
Where Nokia comes in is that such high capacity transport networks are vital for delivering fixed and mobile broadband. Nokia is planning to build networks that can run IPTV, video on demand, cloud computing and services.
In a statement Nokia said that by 2015 data traffic across mobile networks alone will exceed 43 Exabytes, equivalent to 6.3 billion people on the planet downloading two digital books every day.
Vesa Tykkyläinen, head of the optical networks business line at Nokia Siemens Networks said that the rapid processing of digital signals is crucial in high capacity optical networks.
ClariPhys uses 40nm and will be among the first to use 28nm CMOS for 100G, high-gain and low-latency soft-decision forward error correction and many other innovations.
Nokia Networks is hoping that this will give it the march on rivals, although it is not clear how much cash has changed hands.