Wedoany.com Report on Jan 31st, Corning is addressing market concerns about fiber shortages by expanding its manufacturing capacity. The company highlights the application potential of its connectivity technologies and next-generation connectivity platforms in data centers and for broadband operators.
Previous reports have indicated tight fiber cable supply in the United States, driven primarily by AI data center construction and federal broadband funding programs. Some projects have consequently experienced delays, with delivery times scheduled into 2026. Lead times for ribbon fiber exceed 60 weeks, and orders for loose tube fiber used in outdoor and fiber-to-the-home projects are booked through the third quarter of this year.
Corning is collaborating with customers to secure funding for expanding capacity at its Hickory, North Carolina plant to meet the needs of partners, including Microsoft. Recently, the company also signed a $6 billion fiber supply agreement with Meta.
During the Q4 2025 earnings call, Corning Chairman and CEO Wendell P. Weeks told investors, "There is sufficient fiber globally to meet demand." He further explained that the company is seeing growth not only in fiber demand but also in strong demand for cables and connectivity products. Its GlassWorks AI™ solution and co-packaged optics products are gaining market traction in the data center space.
Weeks noted, "Our capacity expansions include new, high-density products in fiber, cable, and connectivity. These products are seeing very strong demand, so we are continuing to add capacity and improve manufacturing efficiency." He added, "Over time, these innovations create mix benefits, enabling customers to achieve better optical performance in a smaller space while significantly reducing installation costs."
Corning continues to advance long-term partnerships with key customers. Ahead of the Q4 earnings release, the company announced a multi-year agreement with Meta, potentially worth up to $6 billion, to supply fiber, cable, and connectivity solutions for Meta's applications, technologies, and AI initiatives. Meta will be a key customer for Corning's manufacturing and technology capability upgrades in North Carolina.
Weeks stated, "Our long-term partnership with Meta exemplifies our commitment to developing, innovating, and manufacturing critical technologies to advance the next generation of U.S. data centers." He also revealed that the company is in discussions with other major customers for similar long-term agreements and is reserving capacity for them.
Enterprise business and generative AI applications are driving growth in Corning's Optical Communications segment. In Q4 2025, the segment's sales reached $1.7 billion, a 24% year-over-year increase; net income was $305 million, up 57%, with an 18% net income margin. Full-year sales were $6.3 billion, growing 35%; net income was $1.0 billion, rising 71%.
Corning CFO Edward Schlesinger pointed out that growth in Enterprise sales was the primary driver for the increase in Optical Communications revenue in 2025. He said, "For the full year, Enterprise—the portion of our business inside the data center—was up 61% year-over-year. Growth in the hyperscale data center business was even stronger." The Carrier Network business grew 15% over the same period, driven largely by sales connecting data centers.
Schlesinger expects the data center sector to continue driving significant growth, citing the recent Meta agreement as a good example. Looking ahead, Corning forecasts accelerating year-over-year sales growth, with sales for Data Center Interconnect and Fiber-to-the-Home businesses expected to increase approximately 15% to $4.2-$4.3 billion.
