The explosion in demand for AI computing power has sent shockwaves through the optical fiber industry, driving prices to new heights. Recently, the first-half performance forecasts released by listed companies, such as Hangdian Co., Ltd. and Yongding Co., Ltd., have revealed remarkable growth, signaling a sustained period of high prosperity within the sector. The significant uptick in optical fiber prices, coupled with a widening supply-demand gap, has spurred several companies to embark on expansion initiatives. On the evening of July 10, FiberHome Technologies Group unveiled plans to raise funds not exceeding RMB 2.913 billion for projects like intelligent optical fiber manufacturing. Meanwhile, LY Technology is poised to participate in the restructuring of Futong Jiashan, making a foray into the realm of optical fiber communications. However, this wave of expansion within the optical fiber industry has also sparked market concerns regarding the potential for a 'cyclical curse.' Industry insiders highlight that the implementation of new production capacity confronts multiple hurdles.