Light Reading: Chipmakers Parama Networks and PMC-Sierra are compacting the functions of add/drop multiplexers (ADMs) onto single chips, aiming to catalyze a generation of lower-cost systems. Working on the low end, PMC-Sierra today announced a $300 chip that could bring a pizza-box-sized ADM’s price to the range of $3,000 to $5,000. Parama, likewise, is continuing to tout its own ADM-on-a-chip and a $5,000 system price, although the company has its eye on higher-end systems than does PMC. Parama will be showing its chips at Supercomm next week. I wrote about this trend earlier.