CITIC Securities: Fiber Preform And Optical Fiber Capacity Expansion Accelerates

A research note from CITIC Securities said an expansion wave in fiber preforms and optical fiber is underway as optical fiber prices have risen sharply so far this year, lifting investment returns and prompting companies to start preform capacity expansion plans, according to 36Kr. The note said AI development is driving stronger demand for optical fiber and the industry remains in short supply. It added that while multiple companies have announced expansion plans—including Hengtong Optic-Electric, Far East Smarter Energy, Tongding Interconnection, Hoshine Silicon Industry, and Han’s Laser—execution risks remain because many have limited prior experience in preform manufacturing. Even if projects proceed on schedule, most new capacity is expected to come online in the second half of 2027 or later, meaning limited impact on supply-demand conditions in 2026 and 2027, while AI-related demand could be even stronger.