S/PDIF stands for Sony/Philips Digital Interface. In the photo of a motherboard above, the S/PDIF port is the orange one on the right side and circled in red.
S/PDIF is an optical audio cable format that allows the transfer of digital audio signals from device to device without needing to convert to an analog signal first. This is beneficial since such a conversion can hurt audio quality.
This article is part of the Tom's Hardware Glossary.
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