ZHONGTAI SECURITIES·2025-08-12 11:34Investment Rating - The report suggests a positive investment outlook for the hollow-core fiber industry, with a projected compound annual growth rate (CAGR) of 56.52% over the next six years [6][39]. Core Insights - Hollow-core fiber, utilizing air as the transmission medium, offers significantly lower latency (30% reduction compared to traditional fibers) and lower loss (below 0.1 dB/km), making it suitable for time-sensitive applications such as financial high-frequency trading and AI data center interconnections [6][14]. - Microsoft is leading the commercialization of hollow-core fiber technology, planning to deploy 15,000 kilometers for data center and AI model connections within the next 24 months [6][34]. - The hollow-core fiber market is still in its early commercialization phase, with significant growth opportunities as demand from data center interconnections (DCI) expands [6][39]. Summary by Sections Hollow-Core Fiber Technology - Hollow-core fiber transmits over 95% of its energy in air, resulting in minimal non-linear effects and high thermal stability, which supports high-speed data transmission [6][12]. - The technology is expected to revolutionize traditional fiber optics by overcoming physical limitations associated with glass fibers [6][14]. Market Dynamics - The global market for hollow-core fiber is projected to reach $1 billion by the end of 2030, driven by rapid DCI business expansion [6][39]. - The competitive landscape is expected to remain stable, dominated by major players like Corning and domestic companies such as Yangtze Optical Fibre and Cable [6][39]. Domestic Developments - China Mobile's first commercial deployment of hollow-core fiber in July 2025 marks a significant milestone in the domestic market, with expectations for increased demand and reduced costs as production scales up [6][46]. - Major Chinese companies like Yangtze Optical and Hengtong are making technological breakthroughs that will further drive down costs and enhance market adoption [6][49]. Investment Recommendations - The report highlights key companies to watch, including Yangtze Optical Fibre, Hengtong, and FiberHome, which are positioned to benefit from the growth in hollow-core fiber technology and DCI demand [6][46].