Fiber-optic patch cords

Photonic crystal fibers are used for their enhanced light-confinement characteristics. Recent releases boast minimal insertion loss and radiation emission.

China suppliers of fiber-optic patch cords are directing R&D efforts toward optimized signal routing. They are using photonic crystal fibers or PCFs, which have better light-confinement characteristics than standard materials. A transmission loss of 0.151dB/km or lower is also emphasized.

Recent releases have minimal insertion loss and radiation emission, stable operating temperature and enhanced contact resistance. Most products meet IEC and TIA/EIA-568-A standards. Others are water-resistant and environment-friendly.

The range from China consists of single- and multiple-mode versions with 10Gbps capacity for 10km or 300m, respectively. G.652 and G.655 optical fibers are often utilized as are D4, DIN, E2000, FC, LC, MIT, MT, MTRJ, MU, SC or ST connectors.

Ferrule polish options are APC, PC and UPC. Cables vary from 1 to 10m but the length is often customized.

The ST series is generally for fiber-optic modules and distribution frames. The SC and MT are applied in network equipment.

The production of fiber-optic patch cords in China remains healthy despite the current economic recession.
The country is now the largest manufacturing hub for this line. It accounted for 40 percent of the world’s exports last year. Overall output hit 50 million units in 2008, a 10 percent YoY increase.

Shipments abroad have been rising by an average of 15 percent annually, driven by increased FTTx deployment. Aggregate overseas sales of fiber-optic and coaxial cables, insulated wires and connectors totaled $1.11 billion in 2007, based on China customs statistics.

FTTx projects have recently picked up, pushing worldwide sales of fiber optics to 159 million core kilometers last year, according to media sources. Of this, 40 million came from China, the second-largest supplier trailing only the US.

The EU, North America and East Asia are the primary markets. Companies are planning to expand to non-EU countries, the Middle East, and South and Central Asia.

Companies are steadily receiving large-volume orders, enabling them to sustain operations despite low margins. Exports are mostly under OEM and ODM contracts. Some makers ship up to 90 percent of their products.

The industry is composed of about 100 predominantly small and medium enterprises. About 80 percent of them are foreign-invested.

Factories are clustered in Sichuan and Hubei provinces, particularly in Wuhan in the latter. Regarded as the cradle of optoelectronics and information technology, the city hosts the Optics Valley of China, the top research base for fiber cables.

Monthly output ranges from 100,000 to 500,000 units and utilization rates 60 to 70 percent. Tier 1 suppliers usually operate at 80 percent of their capacity and turn out up to 800,000 devices.

Fiber-optic patch cords represent between 20 and 70 percent of cable assemblies in China. Mixed production is common, with companies also making connectors, cables, couplers and optical fibers.

Many midsize and large enterprises plan to expand capacity to prop up margins. For some, this entails constructing new factories and raising capital expenditure.

Shenzhen Adtek Technology Co. Ltd will boost production by 10 percent to recoup losses from the financial slump. It will keep its export share at 100 percent.

Zhejiang Sur-link Technology Co. Ltd will raise its 500,000-unit monthly output by 30 percent despite the
10 percent drop in shipments last year.

Moving to a new factory has allowed Shenzhen Olycom Technology Co. Ltd to increase monthly turnout by 20 percent.

Suppliers usually work with customers on new product development. They allot about
3 percent of sales to R&D each year and employ some 10 engineers.

To strengthen their position, companies ensure zero defect and customer return rate, investing an average of $700,000 in equipment upgrade each year. In-house laboratories usually have imported fiber-optic grinders and cutting machines.

Makers do not expect quotes to rise substantially in coming months even as material costs, including that of optical fiber, have again started to fluctuate.

Many suppliers produce ferrules and most components in-house but some procure them domestically to keep spending low. A localized supply chain allows makers to offer prices lower than those of foreign counterparts.

Companies that target the high end, however, are turning to overseas providers for their material requirement. Japan is a common source.

In light of intense competition, quotes are expected to dip by about 5 percent. For the most part, however, they will remain stable.

Prices start at $1.40 and reach $14.30 depending on the technical specification, connector type, cable length and ferrule polish.

In addition to leveraging their cost advantage, China suppliers are sharpening R&D and QC capability to produce more value-added fiber-optic patch cords.

Fierce competition is slowing growth in Taiwan’s fiber-optic patch cord segment. The price war has forced many companies to shift focus to more-lucrative products or drop out altogether.

The industry is composed of 30 to 50 suppliers, most of which regard fiber-optic patch cords as a secondary line. These are made primarily to complement companies’ cable assembly range.

As with other enterprises in Taiwan, Telecom Bridge Co. Ltd is looking to venture into fiber converters, networking devices and optical cables. The supplier is one of the few that specialize in the line. It offers models in simplex and duplex versions supporting single and multiple modes.

Meanwhile, demand continues to drop due to rock-bottom quotes in mainland China. Makers there benefit from the low overhead and localized supply chain that have enticed Telecom Bridge to relocate.

Targeting the telecom market, the company’s products are applied in LANs, WANs, CATV networks, FTTx systems and testing instruments. Telecom Bridge also makes attenuators, couplers and protector sleeves.