YOFC’s Net Profit Just Jumped 888%. How Much Fiber Is AI Actually Eating?

On August 21, YOFC (Yangtze Optical Fibre and Cable) released its 2026 semi-annual report.

Revenue: 9.809 billion yuan, up 53.64% year-over-year. Net profit: 2.925 billion yuan, up 888.88% year-over-year.

The company‘s optical transmission products segment alone generated about 6.126 billion yuan in revenue during the first half, up roughly 59.2% year-over-year, with a gross margin of 63.11%.

This isn’t an isolated case. The Wind Fiber Index is up over 130% so far this year. Yongding shares posted 47.75% revenue growth in the first half. Corning‘s AI-related sales nearly doubled.

The entire fiber optic industry is in the middle of a boom cycle. And the driving force is one thing: AI data centers.

How Much Fiber Are AI Data Centers Actually Eating?

YOFC’s semi-annual report states it plainly: revenue growth was driven primarily by the accelerated construction of compute-data centers.

The numbers are staggering. According to CRU, AI-driven data center optical cable demand has jumped from less than 5% of total demand in 2024 to a projected 35% in 2027. Global data center fiber demand is expected to hit 91.6 million fiber-kilometers in 2026, up 32% year-over-year. By 2030, that number is projected to reach 128 million fiber-kilometers, with AI applications accounting for over 80 million fiber-kilometers.

To put that in perspective: a single large-scale GPU cluster consumes 5 to 10 times more fiber than a traditional data center. Every rack, every connection, every link in an AI cluster requires fiber.

Beyond Telecom: Specialty Fiber Is Feeling the Pinch Too

AI data centers aren‘t just driving demand for standard telecom fiber. High-density cabling scenarios are driving demand for G.657 series bend-insensitive specialty fiber.

Supply-demand data tells the story: global G.657 specialty fiber demand in 2026 is about 370 million fiber-kilometers, while China’s effective production capacity is only about 200 to 210 million fiber-kilometers — a gap of over 46%.

And prices reflect the shortage. G.657.A2 specialty fiber has gone from around $3–4 per fiber-kilometer last year to over $30 today — a 10x increase. Orders are booked through 2028. Major Chinese fiber manufacturers have shifted 30% to 40% of their capacity from standard telecom fiber to specialty fiber — and it‘s still not enough.

What Makes This Cycle Different

In the past, fiber price fluctuations were mostly driven by telecom carrier procurement cycles. This time is different.

The clearest evidence: two of the three major demand drivers — AI data centers and fiber-optic drones — barely existed until recently. Both are still in rapid growth phases, with no visible ceiling in the near term. CRU projects AI and data-center-related optical cable demand will grow at about 32.6% CAGR over the next five years — roughly five times the overall market.

What This Means for Hecho Technology

YOFC’s earnings surge is a signal from the telecom fiber space. But the surge in demand for high-density, high-bandwidth fiber from AI data centers is also driving specialty fiber categories like G.657.

The specialty fiber market is moving from standardized products to customized solutions. AI data centers need high-bandwidth, low-loss fiber with tight bend tolerance. Industrial inspection, medical devices, and research applications need equally targeted custom solutions.

Hecho Technology has been in specialty fiber for nearly two decades, with products spanning plastic optical fiber, glass fiber, and quartz fiber — serving industrial laser transmission, medical device integration, and research applications. In this AI-driven fiber demand surge, the trend toward specialty fiber customization is accelerating — and customization is exactly where Hecho‘s strength lies.

If you’re looking for a custom specialty fiber solution, reach out to the Hecho technical team.

About Nanjing Hecho Technology Co., Ltd.

Hecho Technology focuses on optical transmission solutions for medical, industrial, and scientific applications. Products include plastic optical fiber, glass fiber, quartz fiber, fiber bundles, light guides, and sensors, with OEM/ODM customization available.

Website: www.gohecho.cn | Email: sales@gohecho.cn | Tel: (025)52374096