Gf Securities released a research report stating that at the OFC 2026 conference, leading fiber optic manufacturers such as Corning and YOFC showcased new product portfolios including hollow-core fiber, multi-core fiber, and high-density connectors. These innovations are expected to significantly improve the connection density and scalability of data center optical networks. The North American data center supply chain was previously relatively closed, primarily structured as North American fiber manufacturers to cabling manufacturers to Cloud Service Providers (CSPs). With overseas data center fiber demand surging, and traditional Japanese and American suppliers remaining cautious about capacity expansion, domestic manufacturers are poised to rapidly increase their market share. These high-value products offer strong profitability and are expected to deliver favorable profit elasticity.
Key points from Gf Securities are as follows:
Corning: Multi-Core Fiber and MMC Connectors Set to Continuously Enhance Data Center Network Density According to Corning's official website, the company exhibited MMC connectors equipped with PRIZM™TMT ferrules and multi-core fiber solutions at the conference. (1) Multi-Core Fiber Solutions: These integrate fiber, cable, and connectivity, multiplying fiber capacity while maintaining the original cladding radius and area, thereby boosting AI network density. In practical deployments, cable mass can be reduced by up to 70%, connector count by up to 75%, and installation time by up to 60%. (2) MMC Connectors: The MMC connectors with PRIZM™TMT ferrules reduce insertion force by approximately 70%, simplify installation, support passive termination, and lower the risk of human error. Corning also introduced a 32-fiber MMC connector, further enhancing fiber density and space optimization in high-traffic networks.
YOFC: Hollow-Core and Multi-Core Fibers Expected to Boost Data Center Optical Network Connectivity and Scalability According to YOFC's WeChat public account, the company comprehensively displayed its full range of products and innovation capabilities tailored for future network and AI computing demands. (1) New AI-Optimized Fibers: YOFC showcased products for next-generation intelligent computing centers and backbone transmission, including hollow-core fiber, multi-core fiber, and G.654.E fiber. The company presented a hollow-core fiber spool with a length of 91.2 km and attenuation of 0.04 dB/km, and jointly demonstrated testing and transmission of hollow-core fiber with equipment vendors Nokia, EXFO, and VIAVI. YOFC also displayed its OIO solution based on high-density multi-core fiber interconnect, demonstrating precise coupling between multi-core fiber and array light sources. (2) Ultra-High-Speed Interconnect Solutions: The company exhibited core products for next-generation data centers, including MPO/MTP pre-terminated cables, LC fiber jumpers, 800G optical modules, and 1.6T AEC.
Investment Recommendation: Focus on Improving Supply-Demand Dynamics and High-Value Product Portfolios in the Fiber Optic Cable Sector (1) Demand from UAVs and AI continues to grow strongly, while traditional telecom demand is expected to recover. The complete expansion cycle for preform, fiber, and cable production exceeds one year, and restarting idle capacity also requires over two quarters. The tight supply situation is unlikely to ease in the short term, supporting a continued upward trend in fiber prices. (2) Fiber demand from North American data centers has surged significantly. Domestic manufacturers are expected to continue gaining market share. The previously closed North American supply chain and cautious expansion by incumbent Japanese and American suppliers create an opportunity for rapid market share growth for Chinese companies. These products are highly profitable. (3) The industrialization of new technologies like hollow-core and multi-core fiber is accelerating. Hollow-core products can significantly improve computing power utilization and reduce energy consumption in Data Center Network (DCN) scenarios. In Data Center Interconnect (DCI) scenarios, they can effectively increase bandwidth and reduce transmission latency, with potential changes in CSP orders expected soon.
Regarding specific investments, focus is recommended on leading fiber optic cable manufacturers: YOFC (601869.SH, 06869.HK), Hengtong Optic-Electric (600487.SH), Zhongtian Technology (600522.SH), and FiberHome Telecommunication Technologies (600498.SH).
Risk warnings include the potential for slower-than-expected AI infrastructure construction, slower-than-expected development of AI applications, changes in import/export policies related to AI, and a reduction in international cooperation.
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