Ciena Invests in U.S. Manufacturing with Flex to Support BEAD-funded Projects, Strengthen Domestic Supply Chain and Add High-Tech Jobs

Ciena (NYSE: CIEN), a U.S.-based networking systems, services and software company, is adding domestic manufacturing through an expanded agreement with global diversified manufacturer Flex (NASDAQ: FLEX). Ciena is expected to begin production of the industry’s first pluggable optical line terminals (OLTs) as well as its optical network units (ONU) at a Flex factory in the U.S. in mid-2024.

Advancing its commitment to roll out high-speed broadband to unserved and underserved communities, Ciena’s investments will support the U.S. government’s Broadband Equity Adoption and Deployment (BEAD) projects, create new jobs and help broadband service providers comply with the Build America, Buy America (BABA) requirements.

Under the terms of the agreement, Flex will provide advanced manufacturing capabilities, including specialized optical transceiver assembly, and supply chain services, enabling Ciena to quickly ramp high-volume production of its innovative pluggable OLTs and ONUs at scale. This U.S. expansion builds on a 20-year global relationship. As a result of its partnership with Flex, Ciena is positioned to enable U.S. network providers with greater ability to leverage the BEAD program to expand their local footprint and business opportunities.

Key Facts:

• Ciena has developed a unique and disruptive pluggable OLT technology that is designed and now, through its partnership with Flex, will be manufactured in America. A key enabling technology in next generation broadband deployments, Ciena’s pluggable OLTs are part of a comprehensive broadband portfolio that includes access infrastructure, middle mile networks, and essential software and services.

• Adding to its existing portfolio of innovations that reduce the environmental impact of communication networks, Ciena’s pluggable OLTs greatly increase network sustainability and efficiency by connecting more homes at higher speeds per unit of power and space than competing solutions. Additionally, Ciena’s host routing platforms are already 25G ready, future-proofing service provider network investment without the need for hardware replacement, further maximizing the solutions’ sustainable footprint.

• Ciena will also develop its next-generation 25GS-PON pluggable OLTs and ONUs in the U.S., providing a seamless evolution path for service providers to build open, modular, and scalable broadband networks.

Executive Comments: