AI Computing Power Explodes Demand, Chinese Domestic Optical Fiber Prices Surge 650%
The surge in AI applications has skyrocketed data center demands, pushing Chinese optical fiber markets into a severe supply shortage. Prices for mainstream products have leaped by up to 650%, and orders are backed up to Q1 of next year.
📋 Article Processing Timeline
- 📰 Published: April 19, 2026 at 15:16
- 🔍 Collected: April 19, 2026 at 15:31 (15 min after Published)
- 🤖 AI Analyzed: April 19, 2026 at 16:18 (46 min after Collected)
Central News Agency
(Central News Agency reporter, Taipei, 19th) Artificial Intelligence (AI) applications are driving rapid growth in data center demand, causing the Chinese optical fiber market to recently experience surges in both volume and price. Some enterprises have orders lined up until the first quarter of next year, and the prices of some mainstream optical fiber products have increased by up to 650%. The industry has shifted from past oversupply to a severe supply shortage.
State media CCTV Finance recently reported that optical fiber products are being widely used in data communication, sensing, and medical fields. A staff member at an optical fiber manufacturing company in Jiangsu stated that in the first quarter of this year, production and sales volume increased by over 35% year-on-year, with overseas sales growth exceeding 55%. The products are mainly sold to North America and Southeast Asia, and the prices of some mainstream optical fiber products have soared by as much as 650%.
Sun Wei, R&D Director at Jiangsu Hengtong Optic-Electric, revealed that they currently have ample orders on hand, and "production scheduling is already booked up to the first quarter of next year." Shen Xiaoping, Chairman of another Jiangsu enterprise, Tongding Group, pointed out that the past industry habit was "pay the balance after delivery," but now buyers must "pay first before delivery," and there is absolutely no worry about product sales.
The report stated that the underlying cause of this industry turnaround is primarily the massive demand for data transmission driven by AI computing power. Peng Chuyu, Manager of the Optical Fiber R&D Department at FiberHome Telecommunication Technologies, analyzed that with the enhancement of computing power, the demand for optical fibers in new data centers has surged 5 to 10 times.
Faced with surging market demand, the capacity bottlenecks of optical fibers have also become a focal point. According to reports, as the core component, optical fiber preforms have an expansion cycle spanning 18 to 24 months. To solve the short-term supply pressure, Chinese companies are utilizing technological improvements and multi-base collaboration to enhance efficiency, expecting to increase production capacity by more than 50% this year.
Zhao Xin, a senior engineer at the Technology and Standards Research Institute of the China Academy of Information and Communications Technology, stated that China has built a complete industrial chain covering "optical fiber preforms — optical fibers — optical cables," and the developmental focus is accelerating its shift from scale advantages to technological leadership.
Experts expect that over the next 5 years, the average annual growth rate of global optical fiber and cable demand will exceed 5%. (Editors: Chou Hui-ying / Chang Shu-ling) 1150419
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(Central News Agency reporter, Taipei, 19th) Artificial Intelligence (AI) applications are driving rapid growth in data center demand, causing the Chinese optical fiber market to recently experience surges in both volume and price. Some enterprises have orders lined up until the first quarter of next year, and the prices of some mainstream optical fiber products have increased by up to 650%. The industry has shifted from past oversupply to a severe supply shortage.
State media CCTV Finance recently reported that optical fiber products are being widely used in data communication, sensing, and medical fields. A staff member at an optical fiber manufacturing company in Jiangsu stated that in the first quarter of this year, production and sales volume increased by over 35% year-on-year, with overseas sales growth exceeding 55%. The products are mainly sold to North America and Southeast Asia, and the prices of some mainstream optical fiber products have soared by as much as 650%.
Sun Wei, R&D Director at Jiangsu Hengtong Optic-Electric, revealed that they currently have ample orders on hand, and "production scheduling is already booked up to the first quarter of next year." Shen Xiaoping, Chairman of another Jiangsu enterprise, Tongding Group, pointed out that the past industry habit was "pay the balance after delivery," but now buyers must "pay first before delivery," and there is absolutely no worry about product sales.
The report stated that the underlying cause of this industry turnaround is primarily the massive demand for data transmission driven by AI computing power. Peng Chuyu, Manager of the Optical Fiber R&D Department at FiberHome Telecommunication Technologies, analyzed that with the enhancement of computing power, the demand for optical fibers in new data centers has surged 5 to 10 times.
Faced with surging market demand, the capacity bottlenecks of optical fibers have also become a focal point. According to reports, as the core component, optical fiber preforms have an expansion cycle spanning 18 to 24 months. To solve the short-term supply pressure, Chinese companies are utilizing technological improvements and multi-base collaboration to enhance efficiency, expecting to increase production capacity by more than 50% this year.
Zhao Xin, a senior engineer at the Technology and Standards Research Institute of the China Academy of Information and Communications Technology, stated that China has built a complete industrial chain covering "optical fiber preforms — optical fibers — optical cables," and the developmental focus is accelerating its shift from scale advantages to technological leadership.
Experts expect that over the next 5 years, the average annual growth rate of global optical fiber and cable demand will exceed 5%. (Editors: Chou Hui-ying / Chang Shu-ling) 1150419
Stand with facts, every sponsorship from you is the power to protect press freedom
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The text, images, and audio/video on this website may not be reproduced, publicly broadcast, publicly transmitted, or utilized without authorization.