Today we are going to talk about China’s top fiber optic communication suppliers. Every industry will have the best competitors. They are so good, they lead the development direction of the industry, determine the rules and standards of the industry, and they are also the biggest players and beneficiaries in the industry.

In China, the manufacturing industry is booming, and the fiber optic communication industry has also developed rapidly in recent years. There are thousands of domestic fiber optic suppliers of various sizes. With the flow of time, many of these large-scale suppliers are eliminated by the market. Gradually develop and grow, many are newly established. To survive in the cruel market competition, they all have certain core competitiveness, either for products or for market development.

The core of the top suppliers is still the product. Their products must be of high quality, the technology must be at the forefront of the industry, and standards must be set in the direction of the industry for latecomers to comply. Excellent products create good market feedback, and gradually occupy the market to form a brand. With a brand, marketing is easier, such a virtuous circle.

Since 2020 is not over yet, we have to refer to the 2019 annual corporate financial report to list the top 10 fiber optic communication brand suppliers in China:

1.Huawei

HUAWEI

In 2019, Huawei’s revenue was US$122 billion, slightly lower than Microsoft’s US$125.8 billion, making it a veritable multinational corporation. However, Huawei’s history is not long. It was established in 1987. In the early years, it relied on switches and routers to develop and grow. In 2011, it set foot in the mobile phone business. And in 2018, mobile phone sales exceeded its traditional communications operator business.

In the past two years, Huawei has been at the center of the game between China and the United States. There have been constant disturbances, and its foreign markets have been blocked, while the domestic market has grown rapidly, showing a trend of surpassing foreign markets.

From the perspective of suppliers, Huawei is undoubtedly a great company. It spends more than US$5 billion (10% of its revenue) on R&D expenses, each year to recruit high-paying talents from top schools around the world and China to ensure its technology to be the leading level in the industry, and maintain a 10% elimination rate of managers at the managerial level every internal assessment, making the team more dynamic. The employee stock ownership model allows Huawei to focus more on products and market demand, because good products bring good market share, and good market returns benefit its employees and shareholders. Huawei has quickly become the industry’s No.1 in the past few decades with its outstanding products and efficient team.

At present, in the field of fiber optic communications, Huawei’s products focus on optical transmission and optical network access equipment.

2.ZTE

Like Huawei, ZTE is also located in Shenzhen, Guangdong, and its business scope basically overlaps. However, unlike Huawei, ZTE is a listed company with state-owned capital holdings. The biggest difference between them is the corporate culture. In Chinese business management courses, both of them are typical cases of corporate culture. Huawei is a wolf and ZTE is a bear. This can also be seen in the response to US sanctions.

ZTE was founded in 1985, and by 2019, ZTE achieved revenue of 13 billion U.S. dollars. The proportions of the company’s three major businesses are:Operator network (54%), terminal (29%), telecommunications (17%).

The gap between ZTE and Huawei in the traditional optical fiber communications industry is not big, but in recent years, Huawei has greatly separated the ZTE by its mobile phone business and 5G business. In the current metropolitan area network and backbone network, the core equipment OLT is basically monopolized by Huawei and ZTE.

In Shenzhen, there are a large number of suppliers of switches, OLTs, ONUs, and transceivers. Most of the suppliers are former foundries of Huawei and ZTE.and then learn their technology, improve, and evolve.and create the factory of themself.

3.Fiberhome

fiberhome

Fiberhome was established in 1999 and is located in the “Optics Valley of China” in Wuhan, which is a core enterprise in Optics Valley. As of 2019, its revenue was 3.5 billion US dollars.

The company’s three major businesses: optical transmission, broadband access, optical fiber and cable. The rapid development of the company has benefited from the popularization and promotion of optical fiber communications in China. In the field of FTTX, Fiberhome has maintained its number one market share position for many years. And in the centralized procurement bidding of China’s three major operators (China Telecom, China Mobile, China Unicom), Fiberhome can win the top three bidding shares.

Relying on the huge demand in the Chinese market, Fiberhome has grown rapidly and has become one of the top 500 Chinese companies.

4.YOFC

Established in 1988 and located in Wuhan, YOFC has revenue of 1.1 billion US dollars in 2019.

Currently, YOFC’s main product is optical fiber and cable. Its shipments have ranked first in China for 19 consecutive years and second in the world (only lower than Corning in the United States).

As a leading enterprise in the optical fiber and cable market in China, YOFC insists on multi-process routes. At present, it has mastered three preform preparation processes, especially the preforms made by PCVD process, which can produce the world’s largest preform under the same process. The size of the preform is sufficient for external technical output. At the same time, YOFC is also accelerating the pace of internationalization. It has established a joint-venture optical fiber factory in Indonesia, an optical fiber cable factory in Myanmar, and a total of 9 overseas offices worldwide.

Different from other top optical communication suppliers, YOFC only focuses on optical fiber and cable products, and is refined in the field of optical fiber and cable. Its products have been supplied to China’s national backbone network since 1992, and have a national Endorsed, YOFC has been invincible in China’s optical cable market since then and no longer has an opponent.

5.HTGD(Hengtong Optic-electric)

HTGD is a comprehensive company spanning the two major industries of optical fiber communications and smart grid. However, it has large market share in optical fiber and cable, ranks second after YOFC in China. And the core patented technology of fiber optic cables is inevitable for other companies.

HTGD was founded in 1993 and in 2003 was listed on the Shanghai Stock Exchange, located in Suzhou, China, with revenue of US$4.5 billion in 2019.

HTGD uses its comprehensive strength to develop and manufacture submarine optical fiber and optical cables, as well as submarine cables, as well as photoelectric composite cables and special cables. HTGD is the strongest in this segment.

The remaining 6th to 10th places are: Futong, Zhongtian, SDGI, Fuchunjiang, Guangxu Technology.

These brand suppliers have a large market share in both China and the world. Among them, Guangxu Technology ranks first in the domestic market of optical components and optical auxiliary equipment, and is located in the Optics Valley of China like Fiberhome.

Summary: When you sort out these top fiber optic suppliers, you will find that as a hardware supplier, the only competition is your products and technology. Small and micro suppliers are still struggling to compete for product quality and price to meet market demand, top suppliers have subverted their products and technologies, and have begun to create new market demands, so they are always taking one step faster.

Shiningfiber is also one of the thousands of suppliers in China, and we must admit that we are still far from the top suppliers.We are positioned in the overseas market, provide competitive products for overseas customers, help overseas customers win the local market, and grow together with customers. We believe that through our continuous efforts, Shiningfiber will also become a resounding brand.

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