New business opportunities for high-speed cables under the wave of AI servers

Generative AI has propelled global data center construction into a phase of ultra-rapid expansion, with interconnection density within servers and between racks increasing at a pace previously unimaginable. Each AI server is equipped with dozens of GPU accelerators, requiring extensive high-speed interconnect cabling between cards and between racks. This structural shift presents significant growth opportunities for the cable industry.
Currently, three product categories are drawing the most attention: Direct Attach Cables (DAC), Active Copper Cables (ACC), and Active Optical Cables (AOC). For short-distance interconnections within racks (up to three meters), copper cables remain dominant due to their low power consumption, cost efficiency, and high reliability. As transmission rates advance from 112G to 224G per lane, controlling signal attenuation in copper cables has become a critical technical barrier. Low-loss dielectric materials, precision coaxial structures, and enhanced shielding layers are now becoming standard.
Furthermore, the compute node pooling architecture championed by industry leaders such as NVIDIA has significantly increased the use of copper backplanes and cable backplanes. The cable value per high-end AI rack can exceed that of traditional servers by more than tenfold. As Taiwan remains a global hub for server contract manufacturing, cable suppliers that proactively build 224G measurement capabilities (such as vector network analyzers), secure low-loss material certifications, and refine high-precision manufacturing processes will be well positioned to enter the supply chains of international giants.
Yingchang Enterprise has long been dedicated to the manufacture of computer and communication connecting cables, with over thirty years of expertise in high-frequency cable processing. We are closely monitoring developments in the AI server interconnect market and continuously strengthening our design and verification capabilities for high-speed cabling, providing customers with one-stop services from sample development to mass production.