Xin Lang Cai Jing·2026-02-27 02:26Core Viewpoint - The rapid development of AI is driving an increased demand for upstream raw materials, leading to a rise in prices for these materials, particularly in the optical fiber market, which has reached a seven-year high with prices exceeding 40 yuan per core kilometer, reflecting an annual increase of over 80% [3][6]. Demand Side - The growth in AI computing power is significantly increasing the demand for high-speed connections within data centers and in non-traditional communication fields, leading to a surge in demand for new types of optical fibers such as multi-mode fibers and G.654.E fibers [6]. - Major tech companies like Microsoft are planning to deploy extensive lengths of hollow-core fiber for their AI data centers, indicating a strong market demand [6]. - The "East Data West Computing" national project in China is expected to generate a concentrated procurement demand for over 3 million core kilometers of ultra-low loss optical fibers by 2025 [6]. Supply Side - The production capacity of optical fibers is constrained by the availability of optical fiber preform rods, which are critical raw materials and represent a bottleneck in the supply chain [7]. - The expansion cycle for optical fiber preform rods is approximately two years, and the industry has seen cautious capital investment since 2019, resulting in a mismatch between supply and demand [7]. - The introduction of hollow-core fibers, which offer advantages such as low latency and low loss, is expected to change the market dynamics, although their high cost remains a barrier [7]. Market Concentration - Domestic manufacturers hold 80% of the global optical fiber preform capacity, enhancing their market power and limiting the expansion of traditional and hollow-core fiber production [8]. - The global optical fiber market is highly concentrated, with the top four manufacturers accounting for over 50% of the market share, and the top ten companies exceeding 90% [8]. Company Highlights - Changfei Fiber: A leading global company in the optical fiber industry, expected to reach a production capacity of 100 million core kilometers per year by 2025, benefiting from price increases [12]. - Hengtong Optic-Electric: Among the top three in optical fiber communication and submarine cables, with a projected capacity of 95 million core kilometers per year by 2025 [15]. - ZTT: A major player with a comprehensive product range and a projected capacity of 90 million core kilometers per year by 2025 [17]. - FiberHome: Unique in integrating optical communication systems, with a projected capacity of 85 million core kilometers per year by 2025 [19]. - Tongding Interconnection: Established a complete industry chain, with a projected capacity of 75 million core kilometers per year by 2025 [21]. - Yongding Co., Ltd.: Recognized as a national champion in fire-resistant communication cables, with a projected capacity of 70 million core kilometers per year by 2025 [23]. - TeFa Information: Focused on high-end optical communication products, with a projected capacity of 65 million core kilometers per year by 2025 [25].