Quartz Co. Reports High Capacity Utilization in Fiber Optic Business with Robust Order Pipeline

Q1 Revenue Holds Steady with Growth, Fiber Optic and Semiconductor Businesses Emerge as Growth Engines

According to 36Kr, Quartz Co., Ltd. recently announced that it achieved operating revenue of 256 million yuan in Q1 2026, representing a modest year-over-year increase. Notably, the company's business structure is undergoing a positive transformation — the revenue share from fiber optic and semiconductor businesses continues to grow, gradually becoming the core driver of the company's top line.

The announcement revealed that the fiber optic division schedules production dynamically based on market orders, currently operating at high capacity utilization with a healthy order book, reflecting robust demand from the downstream optical communication market. Meanwhile, the photovoltaic business faces short-term pressure, reflecting the impact of industry cycle fluctuations on the segment.

High-Purity Quartz Sand Capacity Continues to Ramp Up

On the capacity front, Quartz Co. has built an overall production capacity of 100,000 tons per year of high-purity quartz sand. Within this, the Phase III semiconductor quartz materials project — featuring a production line with an annual capacity of 60,000 tons of high-purity quartz sand — has been completed and put into operation, further strengthening the company's supply capabilities in semiconductor-grade quartz materials.

High-purity quartz sand is a critical foundational material for high-end applications such as fiber optic preforms and semiconductor wafer manufacturing. As the global buildout of AI computing infrastructure accelerates, demand for fiber optic communication network upgrades and expansion continues to grow, providing strong support for upstream high-purity quartz materials.

AI Computing Wave Drives Fiber Optic Demand

Currently, AI computing demand — driven by large model training and inference — is fueling massive data center expansion. Interconnectivity between data centers relies heavily on high-speed fiber optic networks. The iterative upgrades from 800G to 1.6T optical modules are imposing higher quality and volume requirements on fiber optic cables and upstream quartz materials.

The strong order performance of Quartz Co.'s fiber optic business is a microcosm of this trend. Driven by the long-cycle demand from AI infrastructure construction, upstream material suppliers in the fiber optic industry chain are poised for sustained benefits.

Outlook: Business Structure Optimization Holds Promise

Overall, Quartz Co. is accelerating its transformation from a traditional photovoltaic quartz material supplier to a dual-engine growth model driven by "fiber optics + semiconductors." Although the photovoltaic business faces short-term headwinds, the high capacity utilization and abundant orders in the fiber optic segment, along with the continuous expansion of semiconductor quartz material capacity, provide a solid foundation for the company's medium- to long-term growth.

As AI computing infrastructure enters a new expansion cycle, the optical communication industry chain is expected to see further improvement in business conditions, and the strategic value of Quartz Co. as an upstream core material supplier will become increasingly prominent.