Deep Tech

How Montage Technology Is Quietly Redesigning the Data Center’s Nervous System

The quiet infrastructure shift powering the next generation of data centers

Updated

February 12, 2026 1:21 PM

Peripheral Component Interconnect Express (PCIe) port on a motherboard, coloured yellow. PHOTO: UNSPLASH

Modern data centers operate on a simple yet fundamental principle: computers require the ability to share data extremely quickly. As AI and cloud systems grow, servers are no longer confined to a single rack. They are spread across many racks, sometimes across entire rooms. When that happens, moving data quickly and cleanly becomes harder.

Montage Technology, a Shanghai-based semiconductor company, builds the chips and connection systems that help servers exchange data without delays. This week, the company announced a new Active Electrical Cable (AEC) solution based on PCIe 6.x and CXL 3.x — two important standards used to connect CPUs, GPUs, network cards and storage inside modern data centers.

In simple terms, Montage’s new AEC product helps different parts of a data center “talk” to each other faster and more reliably, even when those parts are physically far apart.

As data centers grow to support AI and cloud workloads, their architecture is changing. Instead of everything sitting inside one rack, systems now stretch across multiple racks and even multiple rows. This creates a new problem: the longer the distance between machines, the harder it is to keep data signals clean and fast.

This is where Active Electrical Cables come in. Unlike regular copper cables, AECs include small electronic components inside the cable itself. These components strengthen and clean up the data signal as it travels, so information can move farther without getting distorted or delayed.

Montage’s solution uses its own retimer chip based on PCIe 6.x and CXL 3.x. A “retimer” refreshes the data signal so it arrives accurately at the other end. This allows servers, GPUs, storage devices and network cards to stay tightly connected even across longer distances inside large data centers.

The company also uses high-density cable designs and built-in monitoring tools so operators can track performance and fix issues faster. That makes large data centers easier to deploy and maintain.

According to Montage, the solution has already passed interoperability tests with CPUs, xPUs, PCIe switches and network cards. It has also been jointly developed with cable manufacturers in China and validated at the system level.

What makes this development important is not just speed. It is about scale. AI models, cloud services and real-time applications demand massive amounts of data to move continuously between machines. If that movement slows down, everything else slows with it.

By improving how machines connect across racks, Montage’s AEC solution supports the kind of infrastructure that next-generation AI and cloud systems depend on.

Looking ahead, the company plans to expand its high-speed interconnect products further, including work on PCIe 7.0 and Ethernet retimer technologies.

Quietly, in the background of every AI system and cloud service, there is a network of cables and chips doing the hard work of moving data. Montage’s latest launch focuses on making that hidden layer faster, cleaner and ready for the scale that modern computing now demands.

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Operations & Scale

The Coffee Shop Owner’s Guide: 5 Essentials Before You Start Brewing

Because running a café takes more than just a good roast

Updated

March 18, 2026 6:29 PM

A cup of espresso being brewed. PHOTO: UNSPLASH

Coffee has grown beyond being just a drink—it’s part of culture, connection and even a daily productivity hack. Think about it: friends catch up over cappuccinos, professionals start the day with a quick espresso and students practically live on iced lattes during exams. It’s woven into routines, with two-thirds of American adults consuming coffee on a daily basis and averaging around three cups per day. That is much higher than other beverages like tea, juice and bottled water. It is therefore no surprise that the global coffee shop industry is projected to reach about US$123.43 billion by 2030. For entrepreneurs, that makes coffee shops more than cozy corners with good aesthetics. They’re a real business opportunity. But before you open a coffee shop, here are five things you should know.

1. Coffee shop location matters more than you think

Like any small business, the success of your coffee shop often hinges on where it is. Coffee may have broad appeal, but daytime foot traffic and visibility can still make the difference between a busy café and one that struggles to stay afloat. Opening near universities, office parks, co-working hubs or residential neighbourhoods with young professionals can instantly give you a strong stream of potential customers.

That said, choosing a coffee shop location is not just about picking a busy area. You also need to know your target market. For example, opening a third-wave specialty coffee shop in a low-income neighbourhood may not work if your prices are beyond what local residents want to pay. The same café might perform much better in a more affluent or fast-changing district.

Competition matters a lot in the equation too. Walk around the area and see what other coffee shops are doing. The goal is not always to avoid competition but to find a gap in the market. If nearby cafés focus on quick grab-and-go drinks, there may be room for a slower, more community-driven coffee shop built around hand-poured brews and a relaxed atmosphere. Simply put, your shop’s exact street address could make or break your business.

2. In the coffee business, customer experience matters

It’s important to understand this early on: running a coffee shop is not just about serving coffee. Customers today have endless options, from making coffee at home to buying from major chains like Starbucks. What brings them through your doors is often the overall experience.

According to a report by Salesforce, 91% of customers say they’re more likely to make another purchase after a great service experience. That means your café needs to give people a reason to stay, come back and recommend it to others. Maybe it is the interior design, the playlist that feels just right, the reliable Wi-Fi, the convenient charging points or simply the way the space feels. Remember, good coffee gets people in once, but a strong customer experience gives them a reason to return.

3. Know your coffee shop costs before you make your first brew

Opening a modest-sized sit-down café in the U.S. can cost anywhere between US$100,000 and US$350,000. The final number depends on your location, your coffee shop concept, your equipment and how much you spend on the fit-out and interior design. Beyond those startup costs, your monthly expenses—like rent, utilities, staff salaries and coffee bean purchases—will play a huge role in whether your business survives the first year.

Profit margins in coffee retail are thinner than new owners expect. On average, small to medium-sized coffee shops make a 3-10% profit margin, which means efficiency is key. Selling higher-margin items like snacks, light bites and pastries can help lift revenue. A US$2 slice of banana bread, for example, may cost cents to make but can still raise the average spend per customer.

You also need to factor in seasonality when planning your coffee shop revenue. For instance, in warmer months, there is usually higher demand for iced and cold beverages. Many cafés respond by introducing cold brew, iced teas, smoothies or limited seasonal drinks to their menus. That helps keep sales steady and protects the average ticket size throughout the year. At the end of the day, running a café is just as much about managing the numbers as it is about serving great coffee.

4. Baristas are your frontline brand ambassadors  

A barista isn’t just someone pulling espresso shots; they’re often the face of your coffee shop. A warm smile, remembering a regular’s order or sharing a fun fact about the beans can create the kind of connection that keeps customers coming back.

As specialty coffee culture boomed in the early 2010s, baristas became more than brewers—they are now guides and storytellers. By talking about coffee origin, processing methods, bean varieties and roast profiles, they help customers understand what they are buying and why it matters. That mix of knowledge and personality can have a real impact on customer loyalty.

That’s why hiring and retaining great baristas is one of the smartest investments a café owner can make. Beyond competitive pay, creating a workplace where people feel valued also matters. Training, room for creativity and a sense of pride in the craft can go a long way in helping staff stay engaged.

5. Coffee shop marketing must go beyond “Opening Soon” posters  

Opening a coffee shop is exciting, but opening the doors and hoping people walk in is not enough. Good coffee shop marketing today is less about spending big and more about telling a story people want to follow. Well before you launch, start building hype and share behind-the-scenes snippets on Instagram, whether that is taste-tests, design decisions or even the messy parts of setting up the space. That kind of content feels real and helps build anticipation.

Once your café is open, think beyond basic promotion. Loyalty programs, collaborations with local businesses or even hosting events like poetry nights, art exhibits or coffee cupping sessions can all help bring people in. Social media is useful here too; it is not only a place to post latte art but also where you show what your brand stands for. Do you focus on sustainability? Do you source coffee ethically? Do you support local artists? Those details humanize your brand and make your café more than just a pitstop for caffeine.

Brewing it all together

Overall, opening a coffee shop blends passion, community and entrepreneurship. It also requires clear thinking and strong business decisions. From choosing the right location and creating a memorable customer experience to managing costs and building a great team, success takes more than just brewing good coffee. If you treat your coffee shop as both a craft and a business, you give it a much better chance of becoming a local favourite.