The following is the [XGNews]: Fiber shortage has pushed up prices by 70% from record lows recommended by xgapn.com.
News on July 26 (Nanshan) according to the financial times (FT), the global shortage of optical fiber and cable production has pushed up prices and extended delivery time, endangering the construction ambition of the global telecommunications infrastructure.
At the same time, according to CRU data, Europe, India and China are the regions most affected by the crisis. The price of optical fiber has increased by 70% from the record low in March 2021, from $3.70 to $6.30 per core kilometer.
Although the epidemic has prompted some large technology and Telecommunications groups to reduce capital expenditure, the surge in demand for Internet and data services has led to the lack of availability of key but often overlooked materials. For example, Amazon, Google, Microsoft, meta and other companies are expanding the construction scale of data centers, including laying a huge submarine optical cable network.
According to CRU statistics, the total shipment of optical cables in the first half of this year increased by 8.1% year-on-year, of which China accounted for 46%, with the largest scale. The fastest growth rate was in North America, with a year-on-year increase of 15%.
According to the report, the reason for the shortage of optical fiber is the rising price of some key raw materials. For example, helium is a key component in the manufacture of optical fiber glass, but the price of helium has increased by 135% in the past two years due to the shutdown of factories in Russia and the United States. Another example is silicon tetrachloride, another key material, whose price has increased by 50%.
According to the report, Wendell Vickers, CEO of Corning, commented that this was an inflation crisis he had never encountered in his career. Corning is increasing production to meet the soaring demand of the government, telecom companies and large technology groups, including the construction of new infrastructure in the United States and Europe.
Martijn BLANKEN, CEO of exa infrastructure, said that the price of optical fiber has increased by at least 20% in the past six months. “In some cases, it is very unstable, and you need to check it every day.” He added, “we add terms to our customers so that we won’t be responsible for these price increases.”
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