Currently, the global communication industry is undergoing profound changes. With the rapid development of 5G, network construction, gigabit optical networks, Internet of Things (IoT), artificial intelligence, and big data technologies, fiber optic cables, as the core carrier of information transmission, have ushered in a new round of market growth and technological upgrading window period. At the same time, the overall overcapacity and intensified competition in the domestic fiber optic cable industry require enterprises to urgently enhance their competitiveness through resource integration and technological collaboration. In this context, the strategic cooperation between Tongguang Cable (300265) and Changfei Fiber Optic (industry leader) has emerged, becoming another landmark event in the current industry integration.
Strategic cooperation matters
On February 24, 2025, Tongguang Cable and Changfei Fiber officially signed an agreement in Haimen District, Nantong City to jointly invest 600 million yuan to establish Jiangsu Tongfei Technology Co., Ltd. According to the agreement, Tongguang Cable subscribed 339 million yuan and holds 56.5% of the shares, becoming the controlling party; Changfei Fiber Optic subscribed 261 million yuan and holds 43.5% of the shares. Changfei Fiber Optic is preparing to invest 100% equity and some equipment of its subsidiary Changfei Fiber Optic Cable (Tianjin) Co., Ltd., while Tongguang Cable will complete the investment through equity and cash of its subsidiary. The joint venture company will be included in the consolidated report of Tongguang Cable, and will focus on the research and development, production, and sales of optical fibers, optical cables, and special cables in the future, committed to building a complete industrial chain from materials to end products.
Reshaping the competitive landscape and empowering technological upgrades
1. Increased market concentration: The cooperation between the two major enterprises will further squeeze the survival space of other small and medium-sized enterprises, accelerating industry integration. Through channel sharing and capacity optimization, the joint venture is expected to rapidly expand its market share, especially in high-end application areas such as 5G and data centers.
2. Technological innovation accelerates: Tongguang Cable has a deep foundation in the field of special cables, while Changfei Fiber is a global leader in fiber preform, fiber optic, and fiber optic cable technology. The technological collaboration between the two parties will promote breakthroughs in core indicators such as fiber optic transmission efficiency and anti-interference capability, meeting the needs of high-speed networks and data transmission. It is expected in the industry that joint ventures may become a key platform for the export of domestic high-end cable technology.
3. Industrial chain synergy effect: The establishment of Tongfei Technology has connected the entire chain from fiber optic materials to terminal products, reducing production costs while enhancing the ability to respond to market fluctuations. This model may lead peers to follow suit and promote the industry to develop intensively.
Future outlook: Targeting new opportunities in global communication infrastructure
The joint venture between Tongguang Cable and Changfei Fiber Optic is not only a strategic upgrade at the enterprise level, but also in line with the national strategic direction of “new infrastructure” and “east data west computing”. With the continuous growth of global communication infrastructure demand, joint ventures are expected to become important participants in the international fiber optic cable market through technology output and market expansion. Through resource sharing and complementary advantages, the joint venture is expected to occupy a favorable position in future market competition and promote further development of both parties’ businesses. This cooperation will not only enhance the competitiveness of both parties in the fiber optic cable market, but also inject new vitality into the entire communication industry, promote technological innovation and industrial upgrading, and assist in the comprehensive optimization and expansion of global communication networks. picture
conclusion
This cooperation marks a new stage for China’s fiber optic cable industry to move from competition to competition. The establishment of Tongfei Technology may trigger a new round of industry reshuffle, promote technological innovation and market concentration, and inject “Chinese momentum” into the optimization of global communication networks. In the future, whether it can occupy a high ground in fierce international competition is worth continuous attention.
