<div id="readability-page-1"><div> <div> , /PRNewswire/ -- As artificial intelligence moves from model training into broader commercial deployment, the underlying data center architecture is changing rapidly. Higher computing density, faster interconnect speeds and increasing rack-level power consumption are placing new demands on the components and systems that sit around processors, accelerators and switches. Continue Reading <div> <div> <div> <div> <figure> <img id="imageid_2" src="https://imageproxy.pbkrs.com/https://www.prnewswire.com/news-releases/null?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://www.prnewswire.com/news-releases/null"/> <figcaption> (PRNewsfoto/LUXSHARE-ICT) </figcaption> </figure> </div> </div> </div> </div> For Luxshare Precision Industry Co., Ltd. (&#34;Luxshare-ICT&#34; or the &#34;Company&#34;), this shift represents a natural extension of its long-term capabilities in precision manufacturing, high-speed connectivity, thermal management, power management and system-level integration. In 2025, Luxshare-ICT's communications and data center business delivered revenue of RMB 24.57 billion, representing year-on-year growth of 33.81%. Gross margin for the segment reached 18.40%, an improvement of 2 percentage points from the previous year. The growth of this business reflects more than short-term demand from the AI cycle. It also reflects the Company's broader transition from a component supplier to a partner capable of supporting customers at the system architecture level.AI Infrastructure Is Becoming a System-Level ChallengeThe next phase of AI data center development is not defined by computing chips alone. As clusters scale from individual servers to rack-level systems, supernodes and larger data center networks, the performance of the entire system increasingly depends on how power, heat and data move across the infrastructure.High-speed interconnect must support greater bandwidth while controlling signal loss, latency and power consumption. Thermal solutions must handle much higher heat density as AI accelerators continue to increase in power. Power systems must evolve from traditional server-level supply toward rack-level and high-voltage architectures. These are no longer peripheral issues. They are becoming central design constraints for AI infrastructure.Luxshare-ICT's data center strategy is built around this system-level view. The Company does not begin with a single connector, cable, optical module or power product. Instead, its R&amp;D process starts from the customer's future architecture: how the AI cluster is expected to scale, how compute nodes and switches are connected, how much power the rack will consume, and where the thermal bottlenecks are likely to emerge.This top-down approach allows the Company to define products from the system backward. It also allows Luxshare-ICT to combine its four core capabilities — electrical interconnect, optical connectivity, thermal management and power management — into integrated solutions for next-generation AI infrastructure. Electrical Interconnect: The Backbone of Scale-Up NetworksWithin AI racks and supernodes, short-reach, high-density interconnect remains one of the most critical parts of the architecture. Copper-based solutions continue to play an important role in scale-up networks, where latency, power efficiency and signal integrity are essential.Luxshare-ICT has built a broad portfolio of high-speed electrical interconnect solutions for data center applications, including high-speed backplane solutions, CPC and NPC solutions, DAC, ACC, Lite Active Cable, high-speed internal cables, SSIO and Riser Cable products. The Company's technology roadmap has progressed from 56G and 112G toward 224G, with forward-looking work already underway for 448G and beyond. According to the Company's data center business leadership, this roadmap reflects a consistent approach: study the future system architecture first, then identify the bottlenecks that must be solved at the component and module level. In 2025, Luxshare-ICT's self-developed 224G KOOLIO™ CPC/NPC solution, 224G Intrepid NEXUS backplane connector and Intrepid Cable Cartridge high-speed cable backplane solution were already used commercially in certain mainstream AI clusters in China and overseas. For the Company, the opportunity in copper interconnect is not limited to one product generation. As AI architectures continue to evolve, Luxshare-ICT expects demand to increase for solutions that can balance transmission distance, signal integrity, density, manufacturability and total system cost.Copper and Optical Are Complementary, Not Mutually ExclusiveA key part of Luxshare-ICT's technology view is that copper and optical solutions will coexist across different parts of the AI network.In scale-up networks, copper interconnect, CPC and NPC solutions are expected to remain important because of their advantages in short-distance transmission, low latency and power efficiency. In scale-out networks, where longer reach and larger cluster size become more important, optical solutions — including CPO-related architectures — are expected to play a greater role.This is why the Company does not see CPC and CPO as competing paths. It views them as complementary technologies serving different layers of the data center network. Based on this view, Luxshare-ICT is developing a broader &#34;copper plus optical&#34; portfolio, including CPC, NPC, XPO, NPO and CPO-related technologies. This approach gives the Company flexibility to support different customer architectures rather than relying on a single technical route.Optical Connectivity: Moving Toward Higher Speed and Lower PowerAs AI clusters grow, optical interconnect becomes increasingly important for rack-to-rack and data center-scale communication. Luxshare-ICT's optical connectivity portfolio includes DPO optical modules and AOC, LPO optical modules and AOC, LRO optical modules and AOC, with supported speeds up to 1.6T and form factors including SFP, QSFP, QSFP-DD, OSFP, as well as SMF and MMF fiber solutions. In 2025, the Company introduced LRO and LPO optical modules based on a &#34;light active&#34; design concept, aiming to reduce transmission power consumption and end-to-end latency. Its 800G and 1.6T optical modules have entered small-batch supply, while 800G LRO has passed validation with certain customers. The Company is also conducting deeper R&amp;D on 1.6T LRO/LPO and XPO products. At the industry level, optical interconnect is moving toward higher bandwidth, higher density and better thermal efficiency. For Luxshare-ICT, this is not only an optical module opportunity. It is also an integration opportunity, because future optical systems will increasingly require coordination among signal transmission, heat dissipation, mechanical design and power delivery.The Company has already demonstrated an XPO switch-level interconnect and thermal integration solution, showing its ability to address optical connectivity and thermal constraints together rather than treating them as separate design problems. Thermal Management: From Supporting Function to Core System CapabilityAs AI accelerators and switches increase in power, thermal management has become a critical factor in system performance, reliability and deployment density.Luxshare-ICT's thermal management solutions cover active cooling, passive cooling, liquid cooling and temperature-control systems. Its product portfolio includes fan modules, heat sinks, heat pipes, vapor chambers, cold plate liquid cooling systems, manifolds, in-rack CDUs, cabinet CDUs, blind-mate quick connectors and immersion cooling tanks. The Company has also been investing in more advanced thermal technologies. According to management, Luxshare-ICT began laying out microchannel technology several years ago, and related products have started to move into mass production. The Company also began investing in diamond-copper thermal materials more than a year ago, which has accelerated the landing of thermal management products with core customers. These investments are important because AI data center cooling is no longer a matter of simply adding more fans or larger heat sinks. As rack power continues to rise, customers need cooling solutions that are more compact, more efficient and more closely integrated with the server, rack and switch architecture.Luxshare-ICT's advantage lies in combining manufacturing precision with system-level design. This allows the Company to support different deployment scenarios, from air-assisted liquid cooling to cold plate systems, CDU solutions and more advanced liquid cooling architectures.Power Management: Preparing for Higher-Density AI RacksPower delivery is also undergoing structural change. As AI racks move toward much higher power density, traditional server-level power systems are no longer sufficient. The industry is moving toward rack-level power distribution, higher voltage architectures and more modular power systems.Luxshare-ICT's data center power portfolio includes Power Shelf and Rectifier solutions for AI racks, DC Busbar, 70A-1000A 54V Busbar Clip, 12V/54V AC/DC CRPS up to 3200W, 12V MCRPS up to 3200W, as well as multiple Power Module, VRM and VPM products for AI node-level power solutions. The Company has also built capabilities around 800V power systems and has achieved project progress with core customers. This is strategically important. In high-density AI clusters, power efficiency directly affects system cost, thermal load, rack density and data center operating expenses. Luxshare-ICT's power management capabilities allow it to participate earlier in customer architecture discussions and provide solutions that support future rack-level power evolution.Customer Engagement and Global ExpansionIn 2025, Luxshare-ICT continued to deepen cooperation with leading domestic cloud service providers while making meaningful progress in overseas markets. The Company reported notable business development progress in North America, with multiple core component products recognized by leading overseas cloud service providers and computing equipment manufacturers. Several key products were delivered during the reporting period. Management has also indicated that the Company is prioritizing resources around leading global CSP customers, with progress in certain areas exceeding earlier expectations. For overseas customers, Luxshare-ICT's value lies not only in technology development. It also lies in the Company's ability to support product validation, manufacturing ramp-up, quality control and cross-region delivery at scale. As AI infrastructure becomes more complex, customers increasingly need suppliers that can combine engineering depth with manufacturing reliability.Building a Long-Term Position in AI InfrastructureThe development of AI data centers is still in an early stage of architectural change. Over the next several years, customers are expected to continue upgrading compute density, network bandwidth, cooling systems and power distribution. This will create opportunities for companies that can solve practical engineering problems at scale.Luxshare-ICT believes its role in this market will continue to expand. The Company is not approaching AI infrastructure as a single-product opportunity. It is building a broader platform across electrical interconnect, optical connectivity, thermal management and power management, supported by precision manufacturing and global delivery capabilities.As AI systems move toward higher speed, higher density and greater energy efficiency, Luxshare-ICT aims to remain a trusted technology and manufacturing partner for customers building the next generation of data center infrastructure.SOURCE Luxshare Precision Industry Co., Ltd.<img src="https://imageproxy.pbkrs.com/https://rt.prnewswire.com/rt.gif/query-RGF0ZUlkPTIwMjYwNDI0Jk5ld3NJdGVtSWQ9Q040MzAxOSZUcmFuc21pc3Npb25fSWQ9MjAyNjA0MjQwOTU0UFJfTkVXU19VU1BSX19fX19DTjQzMDE5?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://rt.prnewswire.com/rt.gif/query-RGF0ZUlkPTIwMjYwNDI0Jk5ld3NJdGVtSWQ9Q040MzAxOSZUcmFuc21pc3Npb25fSWQ9MjAyNjA0MjQwOTU0UFJfTkVXU19VU1BSX19fX19DTjQzMDE5"/></div> </div></div>

The AI ​​optical communication chain surged and then retreated during the day, with LITE and COHR experiencing a sharp drop after hours, and APH continuing its downward trend. After the sector's continuous surge, the divergence among bulls has increased significantly. Is this a mid-term consolidation or a sign of a pullback? What's your opinion?

The AI ​​optical communication chain surged and then retreated during the day, with LITE and COHR experiencing a sharp drop after hours, and APH continuing its downward trend. After the sector's continuous surge, the divergence among bulls has increased significantly. Is this a mid-term consolidation or a sign of a pullback? What's your opinion?

Optical modules pulled back — time to add?

002475

Luxshare-ICT is expanding its role in AI data center infrastructure as the architecture evolves with the commercial deployment of AI. The company reported a revenue of RMB 24.57 billion in 2025, marking a 33.81% year-on-year growth. Luxshare-ICT's strategy focuses on system-level integration, addressing challenges in power, thermal management, and high-speed interconnects. The company aims to provide integrated solutions by combining its core capabilities, including electrical and optical connectivity, to meet the demands of next-generation AI infrastructure.

09:55 ETFrom Interconnect to Power and Thermal Management: Luxshare-ICT Expands Its Role in AI Data Center Infrastructure