Japanese optical fiber leader plans to raise prices. The report shows strong growth in demand for domestic optical cables in the United States by 2026.

Tengcang, president of Japan Fibre Optics, revealed in a recent interview that the company is currently receiving almost all fiber optic orders from major US cloud service providers, causing a tight supply and demand situation for fiber optic products targeting AI data centers. The company will push for price increases, and some customers have already accepted the price hikes. According to the May report from CRU, strong growth in demand for domestic fiber optic cables in the US is expected by 2026, with data centers driving rapid growth in demand for high-specification, high-value-added fiber optic products such as G.657.A1/A2; the increase in demand for data center fiber optic cables in China is mainly driven by concentrated purchases from domestic leading cloud providers. Huatai Securities believes that on the supply side, the path to recovery of production capacity is clear, but bottlenecks and structural contradictions are prominent, and the shortage of supply will continue.