Soochow: High-speed interconnect upgrades drive demand for high-frequency testing; domestic substitution enters a critical window.

Soochow released a research report stating that vector network analyzers (VNA) are a type of test instrument used to analyze how RF, microwave, and high-speed electrical signals reflect, transmit, how much loss occurs, and how phase changes in devices or transmission channels, and can fully characterize high-speed signal channels. As high-speed interconnect enters the 224G era, the supporting VNA test frequency needs to develop from several GHz to 26.5, 50, 67, or even 110 GHz, driving both volume and price of test equipment upward; the global VNA market is dominated by foreign leaders, and amid supply-demand gaps and supply chain security considerations, domestic leaders are ushering in development opportunities. Soochow's main views are as follows: Vector network analyzer: a general-purpose test platform for measuring electrical network parameters A VNA is a type of test instrument used to analyze how RF, microwave, and high-speed electrical signals reflect, transmit, how much loss occurs, and how phase changes in devices or transmission channels, and can fully characterize high-speed signal channels. Engineers can use a VNA to determine whether loss and distortion can be controlled at appropriate levels after high-speed signals pass through physical channels (PCBs, connectors, cables, etc.). VNAs are widely used in the design, R&D, and production processes of communications, aerospace, manufacturing, and research institutes. High-speed interconnect enters the 224G era, driving both volume and price of test equipment upward As PCBs, connectors, packaging, and other components upgrade from simple electrical connection parts to high-frequency transmission channels, the test frequency of supporting VNAs needs to develop from several GHz to 26.5, 50, 67, or even 110 GHz. At the same time, due to higher speeds, dielectric loss and conductor loss become more severe, and the structure of the object under test becomes more complex (such as more PCB layers), making loss problems more difficult to control and signal distortion increasingly serious. The number of test parameters and sampling times required by customers both increase exponentially. Against this background, VNA equipment demand is rising in both volume and price (comparable to the inflation logic of optical sampling oscilloscopes): (1) 112Gbps PAM4 signals require VNAs with a frequency of 67GHz, currently priced at about 1.5 million yuan per set for imported brands (based on 4 ports), while 224Gbps PAM4 requires VNAs with a frequency of 110GHz, currently priced at about 4.5 million yuan per set for imported brands (customized 8 ports), and (2) as customers' requirements for product quality and precision increase, medium- and low-speed signal channels are shifting from sampling inspection to full inspection, while the number of measurement parameters and sampling times increase exponentially, and the degree of equipment customization rises. Three leading players from the US, Europe, and Japan dominate the market, while domestic manufacturers accelerate entry The global VNA market is dominated by foreign leaders. In 2025, Keysight Technologies, Rohde & Schwarz, Anritsu, and NI together account for about 70%. Due to the particularity of the scientific instrument track, capacity expansion itself is difficult, and foreign leaders find it hard to meet incremental demand. According to the bank's industry chain research, the delivery cycle for Keysight Technologies' network analyzers above 67GHz has already been scheduled beyond one year. Amid supply-demand gaps and supply chain security considerations, domestic leaders with existing technology and channel reserves are ushering in development opportunities. Investment recommendations Recommend [Rigol Technologies]: the DNA5000/6000 series publicly released in October 2025 supports a maximum measurement frequency of 26.5GHz; [Uni-Trend Technology]: the VNA4000 has a measurement frequency of 9GHz, and with R&D support, the bank expects products with higher specifications to be launched. Suggest paying attention to [Ceyear Technologies]: it launched the 3674 series vector network analyzer in May 2022, with frequency coverage up to 110GHz at the time of release, and the highest frequency of this series has now reached 120GHz; [Siglent Technologies]: it launched the SNA6000A series vector network analyzer with a maximum measurement frequency of 26.5GHz at the end of 2022, and launched a 50GHz product in this series in December 2024. The bank expects products with higher specifications to be publicly released and launched within the year. Risk warnings: raw material price fluctuation risk, dependence on imports for key components, and high-end new product launches falling short of expectations.