Chipmaking giant Nvidia’s deepening partnership with US fibre optics maker Corning to replace copper links in next-generation rack-scale artificial intelligence systems is shining a spotlight on mainland China’s optical communications supply chain.
The domestic optical value chain is also doubling down on AI scenarios, emerging as the global bedrock for the high-capacity components required to power AI infrastructure.
“The global optical fibre and cable market had entered a period of both rising volumes and prices since the fourth quarter of 2025,” said Wang Xing, analyst at Huatai Securities, adding that China remained at the centre of global supply with its closed-loop industrial chain and scale-driven cost advantages.
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In 2025, China accounted for 59 per cent of global optical preform output, 57 per cent of optical fibre production and 47 per cent of optical cable output, making it the world’s largest supplier across the chain, Huatai’s data showed.
Riding the trend, shares of major Chinese optical fibre makers – including Yangtze Optical Fibre and Cable Joint Stock, which is listed in Shanghai and Hong Kong, Shanghai-listed Hengtong Optic-Electric, and Shenzhen-listed Tongding Interconnection Information – have surged since late last year, with all jumping more than 200 per cent year to date.
China’s optical fibre index, encompassing dozens of optical fibre and cable suppliers, has risen more than 100 per cent year to date and climbed more than 8 per cent this week following the Nvidia-Corning deal announced on Wednesday, according to financial information provider DZH.
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