China’s optical fiber industry is experiencing a rare boom, with both prices and demand rising sharply. Prices for specialized fiber have jumped as much as 650 percent, while production and sales in the first quarter grew by over 35 percent, with some companies reporting nearly fivefold increases.
The demand shift is largely driven by AI and data centers rather than traditional telecom uses like 5G or fiber-to-home. As large AI models expand, data center traffic is growing rapidly, requiring high-speed optical interconnects. Global demand for data center fiber is expected to exceed 100 million core-kilometers by 2026, with hyperscale AI facilities needing 5–10 times more fiber than conventional data centers.
At the same time, supply is constrained. The upstream production of optical fiber preforms—where most profits and technical barriers lie—requires long investment cycles, and earlier industry downturns reduced capacity. This has led to a global supply shortage.
Chinese manufacturers are emerging as key suppliers, benefiting from advanced production technologies, lower costs, and faster delivery. China now accounts for over 60 percent of the global fiber and cable market and about 70 percent of production capacity. Leading firms such as Yangtze Optical Fibre and Cable Joint Stock Limited Company dominate high-end segments, positioning China at the center of the global supply chain.
Source: People’s Daily, April 21, 2026
http://finance.people.com.cn/n1/2026/0421/c1004-40705509.html