World-Leading Ethernet Cable Supplier Zhaolong Now Offers Spectra7 Based Active Copper Cable Assemblies

Spectra7 Microsystems Inc. (TSX:SEV) ("Spectra7” or the "Company”), a leading provider of high-performance analog semiconductor products for broadband connectivity markets, today announced that Zhaolong Interconnect Technology Co. is now offering data center cable assemblies featuring Spectra7’s embedded GaugeChanger^TM chips. Zhaolong is currently producing NRZ 25G SFP28 and 100G QSFP28, as well as PAM4 50G SFP56 and 200G QSFP56 versions with 400G QSFP-DD cables expected to be available later this quarter.

"China’s data center market is developing extremely fast, and at hyper-scale all data center customers are more sensitive to the power and cost of high-speed interconnects than before,” said Zhaolong Vice General Manager Tony Yao. "We are getting strong interest from them in Spectra7’s technology and our significantly smaller-gauge high-speed cables known as Microlink™ technology.”

There are three main challenges for 400G networking interconnects from the perspective of China’s largest hyperscalers, known as BAT (Baidu, Alibaba and Tencent). First and most challenging is the rapid increase in power dissipation of optical interconnects at these higher speeds. Second is the difficult challenge of the increased density. Finally, there is the serious issue of dramatically higher costs of optics at 400G.

Spectra7’s Active Copper Cable (ACC) technology addresses all three of these challenges by embedding small analog IC’s in copper cables to enable them to be thinner and longer, thus replacing Active Optical Cables (AOCs) for lengths up to 7m for 400G interconnects.

"We believe that early adopters and first movers in the China market will accelerate the acceptance of our data center products,” said Spectra7 CEO Raouf Halim. "We are thrilled to be working with a quality, high-volume manufacturer like Zhaolong and expect to see significant business with them."

About GaugeChanger^TM

GaugeChanger^TM 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 25Gbps NRZ and 50Gbps PAM4 enabling new connector standards of 100/200/400 Gbps.

About Zhaolong Interconnect Technology Co., Ltd.

Zhejiang Zhaolong Interconnect Technology Co., Ltd. was established in 1993 and has more than 25 years of experience in R&D and manufacturing of the cable and interconnects industry. It is a national high-tech enterprise in the cable industry. It is a national standard drafting unit and a research and production base of the Shanghai Electric Cable Research Institute. It is a full-fledged member of China Communications Standards Association, National Information Technology Standardization Association and China Robotics Association. Zhaolong has built a world-leading information and control cable and interconnects manufacturing base, covering an area of about 140,000 square meters. With an annual output of more than 3 million kilometers and 5 million units of various types of cable and interconnects. For more information, please visit www.zhaolong.com.cn.

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 Markham, Ontario, Cork, Ireland, and Little Rock, Arkansas. For more information, please visit www.spectra7.com.

Cautionary Notes

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