North American Data Centers Lead in Rolling out 400G QSFP-DD Interconnects

October 28th, 2019
SAN JOSE, CALIFORNIA- (Business Wire) Spectra7 Microsystems Inc. (TSX:SEV) (“Spectra7” or the “Company”), a leading provider of high-performance analog semiconductor products for broadband connectivity markets announced today that four Tier One Cable Partners are now supplying 400G QSFP-DD Active Copper Cables (ACCs) to the North American Data Center market for qualification as deployment of higher capacity network equipment begins. The suppliers include Molex, Foxconn Interconnect Technologies, Luxshare-ICT and Leoni.

“Customers continue to demand copper as they move to next-generation 12.8 Tbps and 400G switching solutions,” said Alan Weckel, Founder and Technology Analyst with 650 Group. “We see the 400G and above Ethernet switch market growing at over 150% CAGR over the next 5 years to $17 billion, and Spectra7 is sure to benefit from this CAPEX spending growth.”

“The deployment of 400G network equipment has now started and will represent an inflection point in the adoption of our ACC data center technology in 2020," said Spectra7 CEO Raouf Halim. "We have been working very closely with these Tier One cable partners and are pleased that their products are now ready for the market."

TIER ONE CABLE PARTNER COMMENTARY ABOUT SPECTRA7 SOLUTIONS

"Spectra7 has created a compelling solution to address the dramatically increasing power and cost of data center interconnects," said Greg Walz, Advanced Technical Marketing Manager, Molex. “We are seeing significant interest from our largest customers for 400G ACCs with Spectra7 technology.”

“Spectra7 is integral in helping to drive the future of the data center interconnects industry, and we are proud to be collaborating with them to demonstrate next-generation high-speed solutions,” said Jinhua Chen, Enterprise General Manager at Luxshare-ICT. “This collaboration highlights our vision to build relationships that benefit our customers, partners, and provide flexible solutions to their toughest challenges.”

"Spectra7 is a key technology partner for our high speed and high-density interconnect solutions," said Steve Shultis, VP & GM, CMIT Business Unit at Foxconn Interconnect Technologies. “We believe that there is significant opportunity at 400G with Spectra7’s ACC solution.”

“Spectra7 has developed impressive technology for the data center market and we are thrilled to be collaborating with them at 400G,” said Helmut Jungsthoefel, Data Center PM at Leoni. “We believe Active Copper Cables with technology from Spectra7 will play a critical role in the future of copper interconnects”.

SPECTRA7 MICROSYSTEMS ROLE WITH THE 400G QSFP-DD INTERCONNECTS

Hyperscalers are the first to require this higher bandwidth. Initial 400G deployments are in the core of the switching network where thousands of switches are cross-connected with hundreds of thousands of cables. Additionally, Top-of-Rack switches will use 400G break-out interconnects to connect to 4-8 servers each. Finally, Artificial Intelligence servers are now being designed that will need dedicated 400G interconnects.

Spectra7’s GaugeChanger^™ is an innovative and disruptive technology that allows copper to extend much longer lengths without the cost and power penalty of optics. It works equally well at 25 Gbps NRZ and 50 Gbps PAM-4 enabling new connector standards of 100, 200 and 400 Gbps.

ABOUT MOLEX

Molex brings together innovation and technology to deliver electronic solutions to customers worldwide. With a presence in more than 40 countries, Molex offers a full suite of solutions and services for many markets, including data communications, consumer electronics, medical, industrial, and automotive. For more information, please visit www.molex.com.

ABOUT FOXCONN INTERCONNECT TECHNOLOGY, LIMITED ("FIT")

Foxconn Interconnect Technology, Limited focuses on the development, manufacturing and marketing of electronic and optoelectronic connectors, antennas, acoustic components, cables and modules for applications in computers, communication equipment, consumer electronics, automobiles, industrial and green energy field products. With offices and manufacturing sites located in Asia, the Americas and Europe, FIT is a global leader in the manufacturing of high precision interconnect components. For more information, visit FIT's website: fit-foxconn.com.

ABOUT LUXSHARE-ICT

Luxshare-ICT (Shenzhen Stock Code:002475) is a global designer and manufacturer of cable assembly and connector system solutions for consumer, automotive, cloud, and enterprise applications. Dedicated to flexible design, agile manufacturing, and collaborative partnerships, Luxshare-ICT works with technology leaders to create innovative solutions that transform our industries. Learn more at en.luxshare-ict.com.

ABOUT THE LEONI GROUP

Leoni is a global provider of products, solutions and services for energy and data management in the automotive sector and other industries. The value chain encompasses wires, optical fibers, standardised cables, special cables and assembled systems as well as intelligent products and smart services. As an innovation partner and solutions provider, Leoni supports its customers with pronounced development and systems expertise. The market-listed group of companies employs around 95,000 people in 32 countries and generated consolidated sales of EUR 5.1 billion in 2018. Learn more about Leoni’s data center interconnects at www.leoni-data.com.

ABOUT 650GROUP

650 Group is a leading Market Intelligence Research firm for communications, data center and cloud markets. Our team has decades of research experience, has worked in the technology industry, and is actively involved in standards bodies. For more information, please visit www.650group.com.

ABOUT SPECTRA7 MICROSYSTEMS INC.

Spectra7 Microsystems Inc. is a high-performance analog semiconductor company delivering unprecedented bandwidth, speed and resolution to enable disruptive industrial design for leading electronics manufacturers in virtual reality, augmented reality, mixed reality, data centers and other connectivity markets. Spectra7 is based in San Jose, California with design centers in Cork, Ireland, and Little Rock, Arkansas.

CAUTIONARY NOTES

Certain statements contained in this press release constitute “forward-looking statements”. All statements other than statements of historical fact contained in this press release, including, without limitation, those regarding the Company meeting the continued listing requirements of the TSX, the Company’s future financial position and results of operations, strategy, proposed acquisitions, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words “believe”, “expect”, “aim”, “intend”, “plan”, “continue”, “will”, “may”, “would”, “anticipate”, “estimate”, “forecast”, “predict”, “project”, “seek”, “should” or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company’s expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements. Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to the risk factors discussed in the Company’s annual MD&A for the year ended December 31, 2018. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives and cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law.

For more information, please contact:

Spectra7 Microsystems Inc.
Sean Peasgood
Investor Relations
647-503-1034
ir@spectra7.com

Spectra7 Microsystems Inc.
Darren Ma
Chief Financial Officer
669-284-3170
pr@spectra7.com