Luxshare Precision recently conducted its annual shareholder meeting, during which an investor raised a pertinent question: Luxshare champions the simultaneous advancement of optical and copper technologies, yet prominent clients like NVIDIA are making significant strides in the optical chip and fiber optics domains. Is there an inherent clash between these approaches? Luxshare Precision clarified that, within its current product portfolio, the anticipated demand for optical connections in the future is projected to surpass that of copper connections by a substantial margin. Nevertheless, the technical challenges associated with copper connections should not be overlooked. Optical and copper connections do not merely represent a substitution dynamic; rather, they are poised to coexist for an extended period. Copper connections are more apt for short-range applications, whereas optical connections exhibit superior performance in long-distance and high-speed scenarios. As copper connections reach the threshold of signal transmission capabilities, optical connections step in to surpass these limits. Consequently, Luxshare's strategy of fostering growth in both optical and copper technologies is fully compatible with the strategic investments of its leading customers in the optical chip and fiber optics sectors.
