What Is High-Speed Copper Connection? What Is the Impact on Future Copper Consumption?

Today, let's talk about the particularly popular "high-speed copper connections" this year. What is high-speed copper connection?

High-speed copper connection, also known as "high-speed connectors" or "high-speed copper cable connections," is a core data transmission component that forms an efficient signal transmission system.

Compared to optical modules, high-speed copper connections have a significant cost advantage. (An optical module is a pluggable optical component used in fiber optic communication systems that converts electrical signals into optical signals or converts optical signals into electrical signals. Optical module connections typically refer to the physical and electrical connection methods established between optical modules in fiber optic communication devices.)

For example, at GTC2024, NVIDIA introduced that NVL72 uses copper cable interconnects, saving six times the cost compared to optical modules. In scenarios such as data centers that require a large number of connection components, this cost-saving effect is considerable. This makes high-speed copper connections widely favored in areas pursuing low cost, high speed, and low power consumption, such as data centers, high-performance computing, and telecommunications networks.

Application scenarios and cases of "high-speed copper connection" against a huge explosion in AI computing power demand

In specific application scenarios in AI servers, high-speed copper connections are used to connect key components such as GPUs to achieve efficient data transmission, meeting the demand for fast processing of large amounts of data in AI computing power.

For example, in building high-performance AI computing clusters, copper cables occupy an important position in short-distance transmission due to their high cost-performance ratio, low power consumption, and high reliability!

In the connection technology of large switches and routers, the application trend of backplane connectors is becoming increasingly significant. High-speed copper connections can meet the high-speed data transmission requirements between these devices, ensuring efficient communication within data centers.

As another example, NVIDIA:

NVIDIA's NVL72 server adopts a copper interconnect solution, including 5000 copper cables with a total length of over 3219 meters. With the release of new products from NVIDIA and the continuous development of data center integration solutions at home and abroad, it is expected that there will be a significant increase in demand for the copper interconnect market in the future.

According to a report by LightCounting, the compound annual growth rate of high-speed copper cables from 2023 to 2027 is expected to be 25%, with shipments of high-speed copper cables expected to reach 20 million units by 2027. Shanxi Securities predicts that the market for new high-speed copper cables brought by GB200 will be close to USD 6 billion in 2025, and the application scenarios for high-speed copper cables will continue to expand.

In which other fields can "high-speed copper connection" be applied?

Smart Home

High-speed copper connections can be used for the connection between smart home devices, such as between smart TVs, smart speakers, and smart cameras. For example, the rapid and stable data connection needed for instruction transmission and information interaction between smart speakers and other smart home devices can be met by high-speed copper connections.

Autonomous Driving

In autonomous vehicles, high-speed copper connections are used for connections between various electronic systems in the car, such as data transmission between sensors (LiDAR, cameras, etc.) and the onboard computer. The electronic systems within the vehicle need to process large amounts of sensor data quickly to make accurate driving decisions, and high-speed copper connection technology can ensure high-speed data transmission and low latency.

In terms of innovation, new cable materials are being developed. For example, Wolun is developing new cable materials to meet the needs of high-speed connection applications, which help improve the transmission performance of copper cables, reduce signal loss, and enhance anti-interference capabilities.

In addition, there is innovation in stranded wire cores. Copper cables with stranded wire cores can increase flexibility and improve transmission performance to some extent. This design can better adapt to different application scenarios, such as connections in some devices that require bending or movement.

Comparison of the "high-speed copper connection" markets at home and abroad

Firstly, internationally, the high-speed connector market is mainly dominated by a few top international manufacturers, such as Amphenol, Molex, and TE Connectivity, which occupy 60% – 80% of the global market share. These companies, with their strong technical strength and market competitiveness, occupy an important position in the global high-speed connector market.

For example, in specific fields such as data centers, cloud computing, and 5G communications, foreign manufacturers such as Amphenol have a high market share…

Currently, domestically, manufacturers already have the capability for mass production of high-speed copper cables and their upstream components required for AI computing power.

For example, the recently popular Wolun is a leading company in high-speed communication cables. Its subsidiary, Leting Zhilian, has strong R&D and production capabilities in the wire industry. Dingtong Technology focuses on communication connectors and is an important supplier for Amphenol and Molex; Huafeng Technology masters the core technology of connectors, etc.

Although domestic companies have a low market share in the high-end connector industry and mainly operate in an OEM mode, with continuous R&D investment, the technical level of domestic companies is gradually improving, and their market share in the high-speed copper connection market is expected to gradually increase.

How much copper is actually used in "high-speed copper connections"? What impact will this have on downstream copper consumption?

In fact, the amount of copper used in "high-speed copper connections" does not have a fixed value as it depends on various factors such as specific application scenarios, transmission distance, and data transmission rates.

Take NVIDIA's GB200NVL72 as an example, the total length of the internal cables is close to 2 miles, with 5000 independent copper cables. NVL72 requires 5184 high-speed differential pair copper cables, which need to connect from the backplane of the compute tray to the backplane of the switch tray, and then from the backplane of the switch tray to the NVLINK switch chip. It is estimated that the total value of the high-speed copper cables in the NVL72 cabinet is USD 117,000, and the total value of the NVL36 is USD 104,000.

According to Trendforce news, the shipment of GB200 cabinets is expected to reach 60,000 units in 2025, and the new market for GB200 cabinet copper cables will reach approximately USD 6.4 billion in 2025.

In the future, with the expansion of data centers and the upgrade of AI computing power demand, the demand for high-speed copper connections as a core data transmission component is expected to increase significantly. This will directly drive the demand for copper materials, particularly high-quality copper strips, copper wires, and copper alloys used in making connector terminals.

In terms of downstream consumption, it is also expected to expand. Emerging fields such as smart homes, autonomous driving, and industrial internet will further boost copper consumption volume.

Currently, major domestic electronic component manufacturers are increasing their investment in high-speed connection devices to improve the technical level and performance of domestic products, which will promote the rapid development of the high-speed copper connector industry in China and, in turn, drive the demand for copper materials.

Jintian Copper, as a professional company engaged in copper processing, high-tech materials, and building materials, has developed into an important player in the industry. The company has more than twenty production and trade subsidiaries, with main products covering copper wire, copper rod, copper profile, copper strip, copper plate, enameled wire, valves, and magnetic materials, all of which occupy leading positions in the industry in terms of production. With its strong production capacity and leading technology, Jintian Copper occupies an important position in the copper materials field. As an industry leader, Jintian Copper will provide strong support for the rapid development of the industry with its leading technology and product advantages, further promoting the growth of copper material consumption demand. In the future, Jintian Copper will play a more critical role in meeting the broad demand of the domestic and international markets.