Reports indicate that on June 8th local time, Amazon announced a multi-billion dollar agreement with glass and fiber optic technology manufacturer Corning Inc. The deal is for the supply of optical fibers, cables, and connectivity solutions to support Amazon's expanding data center infrastructure across the United States. This follows a major contract signed between Corning and AI leader NVIDIA in May. Corning will establish three new manufacturing facilities in North Carolina and Texas dedicated to supplying optical products for the computing power giant. The parties stated that Corning will increase its U.S. manufacturing capacity for optical connectivity products tenfold and expand its U.S. fiber production by more than 50%. The agreement is expected to create 1,000 high-skilled jobs and hundreds of construction jobs at Corning's North Carolina facility. This move is a continuation of Amazon's announcement last year to invest an additional $10 billion in cloud infrastructure in the state.
Optical fiber is increasingly being attributed with AI characteristics similar to optical modules and PCBs. It is evolving from a traditional communication transmission medium into a critical component supporting AI computing power networks. This fundamental shift in demand drivers is underpinning the current industry upcycle. Analysis from Guosheng Securities points out that U.S. domestic fiber production capacity is highly concentrated among a few manufacturers like Corning. A core variable in this market cycle is that overseas demand is becoming a key driving force, with Chinese fiber optic cable manufacturers beginning a systematic expansion into global markets.
Unlike previous cycles driven purely by domestic demand relying on a "single market and single customer type," the current round of fiber price increases stems from synchronized demand from multiple global entities. Both the sustainability and the magnitude of price increases are expected to surpass previous cycles. Guosheng Securities believes the fiber optic cable industry is experiencing a different kind of boom cycle compared to the past. Unlike traditional cycles dominated by telecom operator bulk procurements, the long-term growth logic for fiber optic cable is strengthening, leading to a systematic revaluation of the sector.
On one hand, the global expansion of fiber optics is accelerating, opening long-term incremental growth space. On the other hand, high-density interconnections within AI data centers are driving demand for specialized optical fibers. Fiber is transitioning from a standardized bulk commodity to a high-value-added, customized product category, significantly increasing its unit value. Downstream components like MPO connectors and shuffle boxes, as key passive devices enabling high-density fiber interconnections in the AI era, are poised to benefit from both volume growth and price increases.
Related Hong Kong-listed companies in the fiber optic industry chain:
YOFC (06869): According to a Northeast Securities research report, YOFC's performance continued its strong growth in Q1 2026, with quarterly net profit and gross profit margin both reaching record highs. The period's gross margin was approximately 41.5%, a year-on-year increase of about 13.7 percentage points, which is also the core reason for the release of performance elasticity in this cycle.
TRIGIANT (01300): The company's wholly-owned subsidiary, Jiangsu Trigiant Technology Co., Ltd., leveraging its national-level enterprise technology center R&D platform, has achieved key technological breakthroughs in the core product area of feeder cables (signal cables). With advantages in product performance, quality, and quality control systems, it has been formally integrated into the core supply chain of a global top-tier storage leader through overseas cooperation channels. Related products will support the leader's large-scale layout in the field of intelligent computing centers (AIDC).
NANFANG COMM (01617): According to its 2025 annual report, the company is primarily engaged in the manufacturing and sales of various optical cable products and related equipment, as well as the processing and sales of color-coated steel plates. Through its joint venture entities and associates, it has formed a complete industrial chain encompassing optical fiber preforms and optical fiber businesses. The company provides various models of optical cables and related equipment to meet customer demand. NANFANG COMM holds a 51% interest in Yingke Optical Guide, which is mainly engaged in manufacturing and selling optical fiber preforms.
PUTIAN COMM (01720): Public information shows that PUTIAN COMM Group began manufacturing data communication cables in 2001. It offers a wide variety of optical fibers and cables, data communication cables, and integrated cabling products under the "Putian Hanfei" and "Hanphy" brand names. Its optical fibers and cables, and data communication cables are primarily used by major Chinese telecom network operators for network construction and maintenance. Its integrated cabling products mainly include fiber and copper patch cords, as well as connection and distribution components such as patch panels, distribution cabinets, and data and voice modules and faceplates.
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