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Fiber Optic Demand Surge Sends Lien Kwang Communications to Daily Limit
Electronic Technology · Computer Communications · economic_daily · 2026-09-21
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Lien Kwang Communications hit the daily price limit as global fiber supply shortages and AI infrastructure demand drive expansion into high-end production.
What Happened
Market Catalyst: Shares of optical communication firm Lien Kwang Communications surged to the daily limit today, fueled by tightening global fiber supply. Analysts note that AI-driven demand has significantly extended DCI delivery cycles, leading to a global shortage of fiber and optical components.
Industry Trends: The global fiber capacity gap is expected to persist through 2027, as evidenced by major telecom operators like Verizon securing long-term supply contracts. Demand has expanded from internal data center interconnects to global long-haul backbone networks, driving up prices and order backlogs.
Corporate Strategy: The company's board has approved an upgrade to its fiber business, shifting focus from single-mode to specialized fiber, while developing MPO and FAU technologies. Lien Kwang plans to establish domestic production facilities in Taiwan to process fiber preforms into optical filaments.
Future Outlook: With new factory sites already selected for fiber and connector production, the company aims to reduce reliance on imports. This strategic move is intended to bolster local production capabilities and capture the growing demand for high-end optical infrastructure.