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Tencent and Spectra7 Launch CRX Consortium to Accelerate Adoption of Active Copper Cable Technology


Spectra7 Microsystems Inc. (TSX:SEV) ("Spectra7" or the "Company"), a leading provider of high-performance analog semiconductor products for broadband connectivity markets, announced that Tencent (TCEHY:OTC) and Spectra7 have launched the CRX (Copper Reach Extension) Consortium to accelerate the adoption of active copper cable products using technology from Spectra7. Additional founding members will include a complementary mix of partners spanning the entire supply chain for data centers. The complete list of founding members is expected to be finalized in the coming weeks. The announcement took place today at the Optinet China Conference in Beijing.

"Tencent has worked together with Spectra7 to create the CRX Consortium to accelerate the adoption of analog active copper cable technology," said Tencent Sr. Network Architect Dr. Min Sun. "We chose this analog active copper cable approach over competing technologies because of its low power, low cost and fast link-training. Going forward we plan to use only passive and active copper cables for our server connections."

As one of China's largest tech companies, Tencent continues its rapid expansion of data centers around the world with a keen interest in improving efficiency. The formation of the CRX Consortium will accelerate the adoption of advanced connectivity technology from Spectra7 that will allow significantly lower cost and power interconnects to be used in new data centers.

"Tencent's data center growth is impressive and their leadership in this important technology category is welcomed," said Spectra7 CEO Raouf Halim. "We are extremely pleased to have worked with Tencent in the formation of the CRX Consortium and to be part of their network infrastructure upgrade plans."

Luxshare-ICT and Foxconn Interconnect Join CRX Consortium

"Spectra7 is integral in helping to drive the future of the data center interconnects industry, and we are proud to be collaborating with them and Tencent in the formation of the CRX Consortium," said Jinhua Chen, Data Center GM at Luxshare-ICT.

"Our data center partners are continuously making requests for longer reach, lower power, and lower cost cable solutions that cannot be achieved with existing passive or optical technology, said Steve Shultis, General Manager at Foxconn Interconnect Technology's CMIT business unit. "We are thrilled to be partnering with Tencent and Spectra7 in formation of the CRX Consortium."

About the CRX Consortium

The CRX Consortium aims to address the rising cost and power of optical interconnects and the decreasing reach of passive copper as data rates throughout the data center increase. Initial focus will be on 25G Ethernet connections between servers and switches. The consortium is developing a specification for these cables that is expected to be released in Q4 of this year. Subsequent specifications will be developed for 50G, 100G, 400G and 800G Ethernet as well as other evolving protocols. The specifications will cover both NRZ signaling as well as PAM4 signaling.

The initial CRX specification release is planned for Fall 2019; CRX consortium members plan to begin mass deployment of cables complying with the CRX specification later this year.

The CRX Consortium's mission is to promote and accelerate the adoption of interconnects that use Spectra7's active copper cable technology. The group will develop a standard that will allow cables from different suppliers to meet stringent requirements that will enable broad interoperability between network equipment. For more information, visit www.crxconsortium.org

About Tencent

Tencent uses technology to enrich the lives of Internet users. Every day, hundreds of millions of people communicate, share experiences, consume information and seek entertainment through our integrated platforms. Tencent's diversified services include QQ, Weixin/ WeChat for communications; Qzone for social networking; QQ Game Platform for online games; QQ.com and Tencent News for information and Tencent Video for video content. Tencent was founded in Shenzhen in 1998 and went public on the Main Board of the Hong Kong Stock Exchange in 2004. The Company is one of the constituent stocks of the Hang Seng Index. Tencent seeks to evolve with the Internet by investing in innovation, providing a mutually beneficial environment for partners, and staying close to users. For more information, visit http://www.tencent.com

About Spectra7 Microsystems Inc.

Spectra7 Microsystems Inc. is a high-performance analog semiconductor company delivering unprecedented bandwidth, speed and resolution to enable disruptive industrial design for leading electronics manufacturers in virtual reality, augmented reality, mixed reality, data centers and other connectivity markets. Spectra7 is based in San Jose, California with design centers in Cork, Ireland, and Little Rock, Arkansas. For more information, please visit www.spectra7.com.

Cautionary Notes

Certain statements contained in this press release constitute "forward-looking statements". All statements other than statements of historical fact contained in this press release, including, without limitation, those regarding the Company's future financial position and results of operations, strategy, proposed acquisitions, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words "believe", "expect", "aim", "intend", "plan", "continue", "will", "may", "would", "anticipate", "estimate", "forecast", "predict", "project", "seek", "should" or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company's expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements. Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to the risk factors discussed in the Company's annual MD&A for the year ended December 31, 2017. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives and cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law.



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