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SAN FRANCISCO & CAMARILLO, Calif. - Amphenol Corporation, known for its interconnect solutions, and Semtech Corporation (NASDAQ:SMTC), a provider of high-performance semiconductors and IoT systems, today announced the release of a new 1.6T OSFP Active Copper Cable (ACC). This product incorporates Semtech’s CopperEdge™ 224G/lane linear equalizer/redriver ICs and is aimed at the burgeoning AI/ML and data center markets.
The demand for higher bandwidth interconnect solutions is growing with the rapid expansion of data centers to support AI/ML applications. Amphenol’s 1.6T OSFP ACC, equipped with Semtech’s CopperEdge technology, is designed to work with the latest 200G/lane switches and xPUs. This development comes as Semtech shows promising signs, with InvestingPro reporting that 9 analysts have revised their earnings upwards for the upcoming period, suggesting growing confidence in the company’s market position. It is engineered to provide the necessary extended reach for connecting equipment racks with high performance and reliability.
Industry analyst Bob Wheeler from LightCounting remarked on the anticipated deployment of 224G/lane data center infrastructure, expected to start in 2025 and increase rapidly. Wheeler highlighted the role of 1.6T ACCs in supporting higher interconnect speeds with manageable power consumption and cost.
The 1.6T OSFP ACC boasts several advantages, including ultra-low power consumption, which is up to 90% lower than DSP-based solutions. This significant reduction in energy use eases thermal design challenges and cuts energy costs. Additionally, the product promises ultra-low latency, crucial for AI/ML workloads, and simple configuration and control for easier management.
Greg Walz, director of product marketing for high-speed I/O Cables at Amphenol, expressed enthusiasm for the collaboration with Semtech on this interconnect innovation. Brian Bentham, data center market manager at Semtech, also commented on the partnership, emphasizing the combined technological strengths of both companies in delivering solutions for next-generation AI/ML infrastructure.
The 1.6T OSFP Active Copper Cable is currently available from Amphenol, with more information on display at their booth #2718 and Semtech’s booth #1028 at the OFC 2025 forum.
This announcement is based on a press release statement from the involved companies. Investors interested in deeper analysis can access comprehensive research through InvestingPro, which offers exclusive insights into Semtech’s financial health, including over 10 additional ProTips and detailed valuation metrics.
In other recent news, Semtech Corporation reported its fourth-quarter earnings for fiscal year 2025, surpassing market expectations with an earnings per share (EPS) of $0.40, compared to the forecast of $0.33. The company achieved revenue of $251 million, slightly above the expected $250.18 million, marking a 6% sequential increase. UBS analysts have adjusted their outlook on Semtech, reducing the price target to $60 from $65 while maintaining a Buy rating, following Semtech’s earnings report. Stifel analysts also revised their outlook, lowering the 12-month price target to $54 from $60, but they too retained a Buy rating. Despite a slight decrease in the company’s revenue outlook for the upcoming quarter, Semtech’s commitment to its product strategy and market expansion remains strong. The company’s guidance for the first quarter of fiscal year 2026 anticipates $250 million in revenue, reflecting a marginal decrease. Both UBS and Stifel note positive fundamentals in markets such as IoT and smartphones, alongside concerns about potential delays in CopperEdge shipments. The company’s strategic focus on R&D investments and margin expansion contributed to an adjusted gross margin increase to 53.2%.
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