The explosive growth in demand for AI computing power has pushed the optical fiber industry into an upward price channel. Recently, the performance forecasts of listed companies such as Hangdian Co., Ltd. and Yongding Co., Ltd. recorded significant increases in the first half of the year, and the high prosperity of the industry continues to be verified. The sharp rise in optical fiber prices and the existence of a gap between supply and demand in the industry are driving many companies to launch plans to expand production of optical rods and optical fibers. On the evening of July 10, both Fenghuo Communications and Lingyi Intelligent Manufacturing issued announcements. The former plans to raise no more than 2,913 billion yuan for projects such as intelligent optical fiber manufacturing, while the latter plans to participate in the restructuring of Fortis Jiashan and enter the optical fiber communication circuit. However, the wave of production expansion in the optical fiber industry has also raised concerns in the market about the repetition of the “cycle curse.” A number of industry interviewees told the Securities Times reporter that the implementation of additional production capacity still needs to cross multiple thresholds.

The explosive growth in demand for AI computing power has pushed the optical fiber industry into an upward price channel. Recently, the performance forecasts of listed companies such as Hangdian Co., Ltd. and Yongding Co., Ltd. recorded significant increases in the first half of the year, and the high prosperity of the industry continues to be verified. The sharp rise in optical fiber prices and the existence of a gap between supply and demand in the industry are driving many companies to launch plans to expand production of optical rods and optical fibers. On the evening of July 10, both Fenghuo Communications and Lingyi Intelligent Manufacturing issued announcements. The former plans to raise no more than 2,913 billion yuan for projects such as intelligent optical fiber manufacturing, while the latter plans to participate in the restructuring of Fortis Jiashan and enter the optical fiber communication circuit. However, the wave of production expansion in the optical fiber industry has also raised concerns in the market about the repetition of the “cycle curse.” A number of industry interviewees told the Securities Times reporter that the implementation of additional production capacity still needs to cross multiple thresholds.