Domestic fiber optic global explosion: AI computing power ignites demand, optoelectronic components usher in an upward cycle

Recently, domestic fiber optic cables have experienced a global trend of "explosive orders", becoming a major highlight in the construction of computing infrastructure in the AI era. According to industry data, in the first quarter of this year, domestic fiber optic production and sales increased by over 35% year-on-year, overseas sales growth exceeded 55%, and mainstream product prices rose by as much as 650%. The top domestic enterprises have placed orders in hand until the first quarter of next year, and their products are exported to more than 100 countries and regions. With the advantage of the entire industry chain, China's fiber optic industry has occupied more than 60% of the global production capacity, becoming an indispensable "stabilizer" in the global supply chain. More importantly, this round of prosperity is continuing to transmit, directly driving the optoelectronic components industry into a new upward cycle.

The global surge in domestic fiber optic products is the result of the combination of three factors: the explosion of AI computing power, the acceleration of global digital infrastructure, and the shortage of overseas production capacity. It is also the fundamental logic behind the synchronous explosion of demand for optoelectronic components. On the demand side, in the wave of AI data center construction, fiber optic usage is growing exponentially: conventional data centers only require a few thousand kilometers of fiber optic, while the fiber optic usage of mainstream high computing power data centers has skyrocketed to 5 to 10 times. Meanwhile, the rapid implementation of digital infrastructure in Southeast Asia, the Middle East, and other regions has further amplified global demand. On the supply side, the expansion cycle of overseas prefabricated rod production is as long as 18 to 24 months, and it is difficult to respond quickly in the short term; And China has built the world's most complete "prefabricated rod fiber optic cable" full industry chain, which can complete the delivery from raw materials to finished products in as fast as 15 days, thus quickly seizing global market share.

The entire process of production, transmission, and application of optical fibers relies on the support of optoelectronic components. The production of prefabricated bars requires precise control of electronic components; The transmission process requires optical modules and chips to achieve signal conversion; The terminal application scenarios (data centers, FTTR, industrial interconnection) cannot do without components such as passive components and precision connectors. The explosion of fiber optic demand has directly driven the synchronous increase in demand for various optoelectronic components.

Compared to before and after the explosive sales, the upward cycle characteristics of the optoelectronic components industry have become very obvious. Previously, the industry has long faced problems such as insufficient capacity utilization, low prices, and difficulties in operating small and medium-sized enterprises. With the continuous fermentation of fiber optic explosive orders, the industry is showing a trend of "both quantity and price rising": orders from top enterprises are scheduled until the second quarter of next year, product prices are steadily recovering, and profitability is significantly improving. At the same time, the acceleration of domestic substitution has gradually achieved technological breakthroughs in core products such as optical chips and passive components, breaking the overseas monopoly. The effect of domestic industrial clusters is becoming increasingly prominent. Wuhan Optics Valley alone has gathered 16000 related enterprises, forming a complete industrial chain and making optoelectronic components the core track to undertake the dividends of optical fiber.

The industrial chain linkage effect between optical fibers and optoelectronic components is significant, forming a synergistic growth chain of "optical fibers → optical modules → optical chips → passive components → upstream materials". Specifically, the explosive demand for fiber optics has driven the expansion and upgrading of optical modules. 800G optical modules have been applied on a large scale, and 1.6T optical modules are gradually being delivered in bulk; The upgrade of optical modules has driven an increase in demand for high-speed optical chips, laser emitting devices, and optical receiving devices. At the same time, the increasing demand for fiber preform rods has driven a surge in demand for upstream materials such as quartz sand, high-purity germanium, and fiber optic grease - these materials are also key raw materials for the production of optoelectronic components, further amplifying the industry's growth momentum. In addition, the demand for supporting components such as passive components and precision connectors has also grown synchronously with the fiber optic explosion, jointly promoting the optoelectronic industry to enter a stage of high-quality development.

Looking ahead, the upward cycle of the optoelectronic components industry is expected to last for a relatively long time. The tight supply and demand situation of fiber optic is difficult to ease in the short term. The average annual growth rate of global fiber optic demand is expected to exceed 5% in the next 5 years. Coupled with the expansion of emerging scenarios such as AI and low altitude economy, the demand for components will be further amplified. For enterprises and practitioners, it is currently a critical window period to focus on the core track, strengthen research and development, and optimize the supply chain.