Fiberhome to raise 2.9B yuan for fibre-optic push as AI data centre demand surges

What's the deal? Fiberhome Telecommunication Technologies plans to raise up to 2,913,000,000 yuan (about $429.7 million) through a private placement, with proceeds earmarked for fibre-optic intelligent manufacturing and related projects. The company disclosed the plan on July 10.

Why now? Fibre prices have climbed sharply and a supply-demand gap has opened across the sector, prompting several firms to launch fibre and preform expansion plans. Fiberhome's raise lands as Chinese optical-communications stocks rally on surging demand for AI infrastructure.

How big is the round? The placement ranks in the 99th percentile of non-venture private placements globally over the trailing 48 months, based on a sample of 5,515 comparable deals — placing it among the largest such rounds in that window.

The backdrop: Optical-communications suppliers have posted strong first-half results. Hudian expects net profit of 2.83 billion to 3.00 billion yuan, up 68% to 78% year on year; Hengtong Optic-ElectricDealroom has a profile for this one. Try Dealroom → forecasts 3.02 billion to 3.57 billion yuan, up 87% to 121%; and Dingtai High-tech projects 640 million to 700 million yuan, up 301% to 338%.

What's driving demand? Meta said it would invest billions of dollars in a Canadian data centre with 1GW of capacity for AI model training and inference. On July 13, Meta widened investment in its Hyperion project in Louisiana from $10 billion to $50 billion, lifting capacity to 5GW; including later chip purchases, total lifetime investment is expected to exceed $250 billion.

The signal: Fiberhome's near-half-billion-dollar raise reflects how hyperscaler spending on AI is rippling down to the components that carry the traffic — optical modules, PCBs, and fibre-optic cable. As modules move toward 1.6T speeds, suppliers are betting capacity will follow the money.

Read more: Jiemian