Global Raw Material Price Surge Sweeps the Optical Communication Industry: How to Break Through Under Difficulties?

This price surge is characterized by "global synchronization and full-scale outbreak". According to the latest report from the UK-based Commodity Research Unit (CRU), as the world's core supply base for optical communication, China's price fluctuations directly dominate global pricing, pushing the global fiber price index up to 107.2. Overseas markets have followed the upward trend in tandem, with China's fiber prices now exceeding those in India and Europe.

The fiber optic sector has been the hardest hit. According to CRU data, the price of mainstream G.652.D single-mode fiber has risen rapidly from less than 20 yuan per core-kilometer at the end of 2025 to 40-50 yuan per core-kilometer in February 2026, nearly doubling in half a year. The core reason lies in the rigid supply of fiber preforms—their expansion cycle is as long as 18-24 months, and the industry downturn in previous years led to cautious expansion. Currently, the global capacity utilization rate exceeds 95% , and the supply-demand gap continues to widen. The optical module sector is also under pressure. Industry research reports indicate that the price of indium has risen by nearly 90% . As a core material for 1.6T optical modules, indium phosphide (InP) substrates have a supply-demand gap of over 70% , with orders scheduled through 2027. Coupled with rising prices of copper, gold, and other precious metals, enterprises' profit margins have been significantly squeezed.

The root cause of the price surge lies in the dual effects of explosive demand driven by AI computing power and rigid global supply: according to industry report estimates, global demand for fiber optics related to AI data centers will increase by as much as 58% year-on-year in 2026, with fiber consumption per cabinet dozens of times that of traditional architectures, driving explosive growth in demand for fiber optics and optical modules. Meanwhile, China has tightened exports of key minerals such as indium and germanium, further exacerbating global supply shortages and forming a pattern of "explosive demand and insufficient supply" .

First, optimize supply chain management. Lock in costs by signing long-term procurement agreements and increasing the substitution of domestic materials. This is the core measure adopted by leading enterprises such as YOFC and Hengtong.

Second, promote technological upgrading. Reduce raw material consumption through process improvements and accelerate the application of new technologies such as silicon photonics and CPO. According to industry reports, the global penetration rate of silicon photonic modules will exceed 50% in 2026 , which can fundamentally reduce reliance on raw materials.

Third, upgrade product structures. Focus on high-end products such as 800G and 1.6T high-speed optical modules , whose demand is expected to reach 35-50 million units in 2026 , and improve product premiums through differentiation.

Fourth, strengthen industrial chain collaboration. Establish long-term strategic cooperation with upstream and downstream enterprises to achieve reasonable cost transmission and win-win development.