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China's optical fiber industry enters boom cycle amid strong market demand

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China

China

China's optical fiber industry enters boom cycle amid strong market demand

2026-04-19 17:04 Last Updated At:21:27

China's optical fiber industry is experiencing a boom this year, with both production and prices rising sharply amid strong market demand, as optical fiber and cable are widely used in such areas as data communications and sensing.

At Wuhan FiberHome International Technologies Co., Ltd., an internationally renowned provider of information and communication network products and solutions based in central China's Hubei Province, production lines are running around the clock.

Liu Zhijian, deputy director of the company's cable production line, said that since the first quarter, sales and output across all product categories have remained strong.

"We're operating 24 hours at full capacity. The total orders so far have increased by more than 30 percent year on year. Particularly, the G.657.A2 fiber used in data centers has seen explosive growth and become our fastest-growing product, with sales increasing by over three folds compared with last year," said Liu.

Similar to the Wuhan FiberHome, Hengtong Group in east China's Jiangsu Province, an international enterprise with a diverse range of expertise, including optical fiber, the output and sales of optical fiber products rose in the first quarter of 2026 by over 35 percent year on year, with overseas sales surging more than 55 percent.

"Our exports mainly go to North America and Southeast Asia. We currently have abundant orders on hand, and our production schedule has already been booked through the first quarter of next year," said Sun Wei, director of product research and development at Hengtong Group.

Prices, on the other hand, have also climbed steeply across the industry.

"Prices have grown explosively. Last year, the G.657.A2 optical fiber was priced at 32 yuan (about 4.7 U.S. dollars) per core kilometer. This year, it has risen to 240 yuan (about 35.2 U.S. dollars) per core kilometer, an increase of 650 percent. In the past, we shipped goods first and received payment later. Now, buyers pay before shipment. We have no concerns about sales," said Shen Xiaoping, president of Tongding Group, a professional optical fiber producer.

Yan Guicheng, chief analyst of the communication industry at the China Securities, noted that since late January, optical fiber prices in China and overseas markets have risen significantly.

"From late January until recently, we've seen a significant rise in both Chinese and overseas fiber optic prices. The quantity [of optical fiber] used in AI data centers can be relatively large. Such optical fiber prices were around 40 to 50 yuan (about 5.9 to 7.3 U.S. dollars) per core kilometer at the end of last year. Now, the latest price has exceeded 200 yuan (about 29.3 U.S. dollars) per core kilometer, which is a sharp increase," said Yan.

China's optical fiber industry enters boom cycle amid strong market demand

China's optical fiber industry enters boom cycle amid strong market demand

India, home to one of the world's youngest populations, is witnessing a growing number of students heading to China in search of quality education and stronger career prospects.

Fields such as artificial intelligence, robotics and engineering are seeing a notable rise in enrollments.

Naresh Patra, a researcher in astrophysics at the Chinese University of Hong Kong, chose to study in China for what he describes as the excellent value for the potential boost to his career.

"First thing, the education system is very good and expenses are too low. And second point [is that] you will get good exposure about machine learning and AI, and third point you will get jobs immediately after passing from these universities," said Naresh Patra, a student from India.

There has been a noticeable surge in inquiries from Indian students for courses in engineering and artificial intelligence. To attract more international applicants, Chinese universities have ramped up investment in world-class infrastructure, including advanced laboratories, while expanding scholarship offerings across a wide range of disciplines.

Akshay Bhambri is among those who secured such a scholarship, supporting his research in traditional medicine. He describes his academic experience in China as highly professional and well-structured.

"In different departments, there are enough resources to do that, and even in libraries, whatever you need is provided immediately to you. So this kind of environment for a researcher, for a student, be it undergrad or PhD student, is very helpful when they want to do some kind of research or some kind of understanding to get what they want immediately, so that they can excel in their work," said the researcher.

Cross-border studies are also foundational to forming academic partnerships between China and India, but experts say that even greater outreach and engagement are needed.

"It will be more possible if there is a higher level, not just the people-to-people level, but (if) we see the authorities from both sides interact, and university-to-university interactions, in that case, there would be a lot of confidence building," said Nishith Shah, principal of India China Academy.

More Indian students choose Chinese universities for quality education

More Indian students choose Chinese universities for quality education

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