NORTHEAST SECURITIES·2025-12-29 00:41Investment Rating - The report maintains an "Outperform" rating for the communication industry, consistent with the previous rating [5]. Core Insights - Marvell Technology, Inc. has launched the "Golden Cable" initiative to accelerate and expand the Active Electrical Cable (AEC) ecosystem, facilitating faster time-to-market for large-scale AI deployments. This initiative provides leading software, validated reference designs, and comprehensive support in an open model [2][24]. - LightCounting forecasts that the CPO market will reach $10 billion by 2030, with significant contributions from companies like Broadcom and NVIDIA, who are expected to launch integrated CPO products by 2026. Marvell will also leverage its acquisition of Celestial AI technology to introduce similar products, with shipments starting in 2027 [2][31]. - USI plans to establish a production capacity of over 1 million units of 800G and 1.6T silicon photonic modules in Vietnam, focusing on data center-related businesses and accelerating product and capacity development [3][36]. Summary by Sections Market Overview - The communication index rose by 4.07% during the week of December 22-28, 2025, outperforming other major indices [14]. - Among the communication sub-sectors, communication cables and accessories saw the highest increase at 6.52%, followed by other communication equipment (5.90%) and communication terminals and accessories (5.38%) [17]. Industry Dynamics - Marvell's "Golden Cable" initiative aims to support the growing demand for AEC in AI data centers, with market size projected to grow from $644 million in 2025 to $1.4 billion by 2029 [24][25]. - LightCounting's report indicates that the CPO market is gaining traction, with expected growth driven by advancements in AI and networking technologies [29][30]. - USI's investment in Vietnam is part of a broader strategy to meet the increasing demand for optical modules in North America, with plans to expand production capacity significantly [36][37].