Point2 Technology, the networking hardware designer, has teamed up with Foxconn’s Interconnect Technology subsidiary (FIT) to develop next-generation networking solutions.

The pair signed a Memorandum of Understanding (MOU) to commercialize e-Tube cable solutions, which use radio frequency transmission through plastic waveguides instead of traditional copper or fiber optic approaches.

Designed as an alternative to traditional copper and optical interconnects, e-Tube cables promise significantly lower latency and power consumption while extending reach for scale-up deployments both in and across racks.

The pair has agreed to co-develop 1.6Tb/s and 3.2Tb/s pluggable solutions for AI cluster interconnects, covering in-rack, cross-rack, and switch-to-NIC connectivity.

Upon signing the MOU, the pair said in a statement that the technology could extend transmission reach tenfold compared to copper for a similar cost, while offering three times lower power consumption and “an astounding 1,000x reduction in latency compared to optical interconnects.”

“This collaboration is a game-changer for AI computing and accelerated network interconnect,” said Julia Jiang, VP of marketing and sales at FIT.

“Together, we will redefine interconnect strategies, equipping data centers with the tools to scale AI workloads seamlessly and cost-effectively for multi-generations.”

The partnership comes as data center operators face mounting pressure to support AI workloads of ever-increasing density and scale, with exponentially higher bandwidth and lower latency than traditional applications.

While alternatives like co-packaged optics (CPO) have emerged, Point2 and FIT have opted for e-Tubes, leveraging the former’s UltraWaveTM RF transmitter and receiver SoCs to power the next-gen pluggables.

Upon unveiling the team-up, the pair said the co-developed offering would “unlock unprecedented efficiencies for hyperscalers and chip accelerator manufacturers seeking the highest performance and best-in-class energy efficiency, at infrastructure costs comparable to those of copper.”

“By removing the barriers and shortcomings of conventional copper and optical interconnects, Point2 continues to empower hyperscalers to scale up AI clusters efficiently while driving down cost, power, and latency,” added Sean Park, CEO of Point2 Technology.

The team-up comes after Point2 raised $22.6 million in an extended Series B funding round last February.

The San Jose, California-based firm previously received backing from Bosch Ventures and Molex, a manufacturer of electronic, electrical, and fiber optic connectivity systems, as it looks to build ultra-low power interconnect solutions for next-generation hyperscale, cloud data center, and 5G wireless networks.