Upward increase in fiber optic prices: deep logic under supply and demand restructuring

The recent continuous rise in global fiber optic prices is not a short-term market fluctuation, but the inevitable result of the combination of demand structure iteration, supply rigidity constraints, and global policy resonance. The industry has entered a new cycle of structural reversal.

Demand side: From "communication infrastructure" to "computing power core", upgrading both scale and structure

Traditional fiber optic demand is mainly driven by 5G construction and fiber to the home, with steady growth. The core driving force behind this round of price increases is the demand explosion brought by AI computing centers.

The high-density interconnection of GPU clusters within the AI intelligent computing center results in 5-10 times the fiber optic usage of a single cabinet compared to traditional data centers. In 2025, the global demand for fiber optic in data centers will increase by 75.9% year-on-year, and the proportion will rise to 30% in 2027 (only 5% in 2024).

Emerging scenarios such as fiber optic drones and low altitude economies are rising, with single aircraft consuming 20-30 core kilometers of power. The global annual demand exceeds 50 million core kilometers, with the proportion jumping from less than 1% to 10%.

Superimposed with "data from the east to the west", broadband subsidies from Europe and the United States, and digital infrastructure construction along the the Belt and Road, global demand has exploded simultaneously.

Supply side: Long expansion cycle, rigid production capacity

In the fiber optic industry chain, fiber preform is the core, with the top five global manufacturers controlling 61% of production capacity.

The technical barrier is extremely high: 11N (99.99999999%) ultra-high purity silicon tetrachloride is required, and the process is complex and the yield control is difficult.

The expansion cycle is long: the construction of fiber optic preform production lines takes 18-24 months, with a large investment scale. By 2026, global production capacity will be nearly full, and new capacity will only be released after 2027.

High end production capacity squeezing: AI uses low bending and ultra-low loss fiber optic technology, which is more complex. Manufacturers prioritize the production of high-end products, while ordinary fiber optic production capacity is compressed, exacerbating supply and demand tension.

This round of fiber optic price increases is a structural market driven by a qualitative change in demand, rigid supply, and global policies, which is difficult to reverse in the short term. As a company that has been deeply involved in the industry for many years, we have a deep understanding of industry trends, adhere to self-developed core technologies, ensure stable delivery of high-end production capacity, and jointly embrace new opportunities in the era of computing power with customers through reliable products and long-term value.