This year, the AI computing hardware sector is booming — leading companies like Cambricon and Foxconn Industrial Internet are frequently hitting new highs, with daily transaction volumes in sub-sectors like optical modules and liquid cooling exceeding 10 billion. The underlying “blood vessels” supporting this computing power revolution — high-speed transmission cables such as AOC, DAC, ACC, and AEC — are reshaping the industry chain landscape based on their technical characteristics in different scenarios.
AOC, DAC, ACC, and AEC are terms you may often hear, but you might not fully understand what they mean. To grasp the differences between these cables, let’s start with their “operating principles”.
AOC (Active Optical Cable) is the “long-distance runner”; it integrates optical fibers with optoelectronic conversion modules, relying on optical signals for long-distance transmission. With strong resistance to electromagnetic interference and a weight only 25% that of traditional copper cables, it can easily cover a range of 300 meters (when using OM3 fiber). The power consumption of a 10G AOC is only 200mW, and replacing copper cables can even lower the average temperature of the cabinet by 4°C. However, its “price” is not low — the cost of a 400G AOC is about three times that of a DAC, and it relies on optoelectronic chips like indium phosphide substrates, making cost control key to its widespread adoption.
DAC (Direct Attach Copper) is the “short-distance sprinter”; as a pure copper material “minimalist”, it requires no optoelectronic conversion and offers excellent cost-performance for short-distance (<7 meters) transmission, with power consumption that can be almost negligible and higher reliability (failure rate lower than AOC). The NVIDIA GB200 server uses 5184 DAC copper cables to achieve NVLink interconnection, but its shortcomings are also evident: when the speed increases to 800G, the transmission distance shrinks to 2 meters, and the cable diameter increases, causing significant wiring challenges.
ACC (Active Copper Cable) is like an “upgraded version” of DAC, adding Redriver chips to the copper cable, extending the transmission distance to 5 meters through signal compensation technology, and costing 50% less than AOC, making it suitable for short-distance interconnections within cabinets. However, its “capability boundary” is limited — it can only amplify signals but cannot repair noise, leaving little room for performance improvement.
The most talked-about “potential stock” is AEC (Active Electrical Cable). It integrates Retimer chips and clock data recovery technology, capable of directly reshaping signal waveforms, achieving a transmission distance of up to 7 meters at a 400G rate, with a comprehensive cost 53% lower than AOC and a size 70% smaller than DAC.
As data centers pursue “faster, more efficient, and longer distances”, the technical routes and market patterns of these cables are quietly reshaping.
Currently, DAC remains the main player in short-distance scenarios. In the field of silver-plated copper wires, companies like Jinda Co., Ltd. (Hengfeng Special Conductors) and Luxshare Precision (holding shares in Wande Technology) hold advantages; among connector companies, Luxshare Precision’s Optamax technology copper cables and Dingtong Technology’s high-speed backplane connectors are supporting the demand for DAC applications.
AOC is also “reducing costs and increasing efficiency” under the promotion of silicon photonics technology. By 2025, the penetration rate of 800G silicon photonic modules is expected to exceed 50%, driving an average annual cost reduction of 9% for AOC. Zhongji Xuchuang’s 800G silicon photonic module holds the largest global market share, and Newyeason’s 1.6T products are about to enter mass production, benefiting from technological upgrades; on the materials side, the domestic production of optical fiber preforms by Yangtze Optical Fiber and the 25G optical chip self-sufficiency rate improvement by Guangxun Technology also lay the foundation for the popularization of AOC.
AEC is seen as the “future main player” for short-distance transmission, with industry consensus that it is a long-term solution to replace AOC and DAC, expected to account for over 40% of the market share by 2028, gradually replacing some of the demand for AOC and DAC. In this trend, related companies in the industry chain are worth paying attention to: on the chip side, Lattice Semiconductor’s PCIe Retimer chips and Broadcom’s collaboration with Meta on AEC solutions are already competitive; on the cable side, Zhaolong Interconnect’s mass production of 400G AEC, Wolong Nuclear Materials’ high-speed copper cable materials, and Shenyu Co., Ltd.’s silver-plated copper wire technology all occupy key positions; in the connector field, Ruikeda and Zhongji Xuchuang’s joint layout for AEC, and Huafeng Technology as a supplier of high-speed connectors for Huawei, are also seeing growth opportunities.