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
