China's Optical Fiber Industry Enters A New Growth Cycle.

The fiber optic industry has recently experienced a surge in demand due to the explosive growth in AI computing power, with soaring prices, overflowing orders, and technological breakthroughs becoming the three major hot topics.

Why are prices rising so sharply?

Explosive growth in AI computing power demand: Generative AI networks require 5-10 times more fiber than traditional data centers, with the rigid demand for ultra-high bandwidth and low latency transmission from intelligent computing centers becoming the core engine.

Supply cannot keep up: The expansion cycle for fiber optic preforms is as long as 18-24 months, and building a factory takes at least two years and an investment of three to four billion yuan, making it difficult to respond quickly to demand.

Amazing price increases:
G.652.D single-mode fiber has risen from less than 20 yuan/core-km at the beginning of 2025 to the current 100-120 yuan/core-km.

The price of G.657.A2 specialty fiber has increased by 650%, with the current spot price at approximately 230 yuan/core-km.

Spot prices in some channels have exceeded 50 yuan/core-kilometer, reaching a near seven-year high.

Meanwhile, electricity demand continues to grow, leading to a supply shortage of transformers and related power equipment. Prices for plastic optical fibers and optical fiber transceivers have risen slightly, but remain generally stable.