Credo Introduces New HiWire Shift AECs to Support 400G Q112 Network Ports for Growing AI/ML Backend Networks in China

Rhea-AI Summary

Credo Technology Group Holding (Nasdaq: CRDO) has unveiled a new family of HiWire Active Electrical Cables (AECs) called HiWire Shift. These cables are designed for the growing 400G Q112 network port market in China's Hyperscale Data Centers, specifically addressing AI/ML backend network connections to Top of Rack (TOR) Switches. The new products offer improved energy efficiency, performance, and reliability with up to 100M hours MTBF for critical AI/ML applications.

The HiWire Shift AEC family includes three new Q112 products, currently sampling with production scheduled for Q1/2025. Credo will showcase these new AECs at the upcoming China International Optoelectronic Expo (CIOE) 2024 in Shenzhen, September 11-13, 2024.

Positive

• Introduction of new HiWire Shift AECs for the growing 400G Q112 network port market in China
• Improved energy efficiency, performance, and reliability compared to previous solutions
• Up to 100M hours MTBF for critical AI/ML applications
• Sampling of new products with production scheduled for Q1/2025
• Expansion into the China market with new AEC offerings

Negative

• None.

Insights

Tech Expert

Credo's introduction of new HiWire Shift Active Electrical Cables (AECs) for 400G Q112 network ports is a strategic move to capitalize on the growing AI/ML backend network market in China. The focus on energy efficiency and reliability (up to 100M hours MTBF) addresses critical needs in AI infrastructure.

The new product family, sampling now with production scheduled for Q1/2025, offers three configurations to support various NIC setups. This flexibility could give Credo an edge in capturing market share. However, the long lead time to production might allow competitors to catch up.

The endorsement from 650 Research highlights the importance of QSFP112 in China's AI/ML networks, suggesting potential for significant adoption. Credo's established leadership in AECs could translate to strong market penetration, but success will depend on execution and competitive landscape evolution over the next year.

Market Research Analyst

Credo's focus on the China market with these new AECs is strategically sound. China's AI/ML sector is experiencing rapid growth, driven by government initiatives and private sector investments. The hyperscale data center market in China is expected to expand significantly, creating a substantial opportunity for high-speed connectivity solutions.

However, Credo faces intense competition in this space, with both domestic and international players vying for market share. The company's success will hinge on its ability to differentiate through superior performance, reliability and cost-effectiveness. The long lead time to production in Q1/2025 poses a risk, as market dynamics and technological advancements could shift rapidly in this fast-paced sector.

Investors should monitor Credo's progress in securing design wins and partnerships with key Chinese hyperscalers, as these will be important indicators of the product line's potential success and future revenue impact.

SHENZHEN, China--(BUSINESS WIRE)-- Credo Technology Group Holding Ltd (“Credo”) (Nasdaq: CRDO), an innovator in providing secure and high-speed connectivity solutions, is pleased to announce a new family of HiWire Active Electrical Cables (AECs) targeted specifically for the growing 400G Q112 network port market for China Hyperscale Data Centers, addressing the need for AI/ML backend network connections to Top of Rack (TOR) Switches.

Credo Introduces New HiWire Shift AECs to Support 400G Q112 Network Ports for Growing AI/ML Backend Networks in China (Graphic: Credo)

The new HiWire Shift cables are based on Credo’s market leading 800G HiWire AECs. They offer outstanding energy efficiency, higher performance than previous solutions, and extreme reliability for up to 100M hours MTBF for critical AI/ML applications. Members of the new HiWire Shift AEC family are sampling now, with production scheduled for calendar Q1/2025 and including the following:

• 400G QSFP-Q112 (4x112) to 2* 200G QSFP-56 supporting dual port NIC
• 400G QSFP-Q112 (4x112) to 2* 200G QSFP-112 supporting dual port NIC
• 400G QSFP-Q112 (4x112) to QSFP-Q112 (4x112) supporting single port NIC

“To meet the specific demands of hyperscalers in China that require the Q112 TOR interface, Credo is extending our 800G HiWire AEC family by introducing the new HiWire Shift family which includes three new Q112 products,” said Ameet Suri, Head of AEC Product and Business Development. "HiWire AECs continue to gain traction with Hyperscalers for NIC to TOR connectivity and we look forward to extending that reach even further in the China market with these new AEC offerings.”

“QSFP112 will be a critical node for AI/ML backend Networks in the China Hyperscale Market,” said Alan Weckel, Principal at 650 Research. “It makes sense that new customers in China would consider Credo’s AEC leadership position when looking for a trusted supplier offering low-power, high performance solutions.”

Credo will demonstrate these new HiWire Shift AECs at the upcoming China International Optoelectronic Expo (CIOE) 2024 Conference (CIOE) in Shenzhen, China, Sept. 11 – 13, 2024. CIOE attendees are encouraged to visit Credo in booth #12C29 to learn more about these new HiWire devices.

To learn more about the Credo products in this release go to the product page linked here.

About Credo

Our mission is to deliver high-speed solutions to break bandwidth barriers on every wired connection in the data infrastructure market. Credo is an innovator in providing secure, high-speed connectivity solutions that deliver improved power efficiency as data rates and corresponding bandwidth requirements increase exponentially throughout the data infrastructure market. Our innovations ease system bandwidth bottlenecks while simultaneously improving on power, security, and reliability. Our connectivity solutions are optimized for optical and electrical Ethernet applications, including the emerging 100G (or Gigabits per second), 200G, 400G, 800G and the emerging 1.6T (or Terabits per second) port markets. Credo products are based on our proprietary Serializer/Deserializer (SerDes) and Digital Signal Processor (DSP) technologies. Our product families include Integrated Circuits (ICs) for the optical and line card markets, Active Electrical Cables (AECs) and SerDes Chiplets. Our intellectual property (IP) solutions consist primarily of SerDes IP licensing.

For more information, please visit https://www.credosemi.com. Follow Credo on LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240910544519/en/

Media Contact:

Diane Vanasse

diane.vanasse@credosemi.com

Investor Contact:

Dan O’Neil

dan.oneil@credosemi.com

Source: Credo Technology Group Holding Ltd

FAQ

What new products has Credo (CRDO) introduced for the China market?

Credo has introduced a new family of HiWire Active Electrical Cables (AECs) called HiWire Shift, designed for the 400G Q112 network port market in China's Hyperscale Data Centers, specifically for AI/ML backend network connections.

When will Credo's (CRDO) new HiWire Shift AECs enter production?

Production of Credo's new HiWire Shift AECs is scheduled for calendar Q1/2025.

What are the key features of Credo's (CRDO) new HiWire Shift AECs?

The new HiWire Shift AECs offer improved energy efficiency, higher performance than previous solutions, and extreme reliability with up to 100M hours MTBF for critical AI/ML applications.

Where will Credo (CRDO) demonstrate its new HiWire Shift AECs?

Credo will demonstrate the new HiWire Shift AECs at the China International Optoelectronic Expo (CIOE) 2024 Conference in Shenzhen, China, from September 11-13, 2024.