What happened

Shares of semiconductor solutions company Microsemi (NASDAQ:MSCC) surged as much as 19.5% on Thursday following the company's launch of new Ethernet PHYs for industrial and internet of things (IoT) applications. As of 12:50 p.m. EDT, the stock is up 15.6%.

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So what

Microsemi's Thursday product launch is likely what's driving the stock price higher.

The new PHYs, according to Microsemi's press release, "provide a flexible input/output interface in a package as small as 6 mm x 6 mm, enabling ubiquitous Ethernet connectivity."

"These new single-port SimpliPHY GbE and FE PHYs further underscore our commitment to bring cost effective, differentiated Ethernet solutions to Microsemi's key focus markets, including industrial, IoT, enterprise and carrier/telecommunications," said Microsemi's Ethernet Networking Technology (ENT) group marketing chief Uday Mudoi.

Now what

To vouch for the market potential for these new PHYs, Microsemi cited a 2015 forecast by market research firm IHS projecting "Gigabit Ethernet PHYs' total annual broadband and infrastructure networking Ethernet copper media port shipments to grow more than 35 percent, from 526 million in 2015 to more than 717 million by 2019."

These new Ehternet PHYs are available for purchase orders now, Microsemi said.

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