Samsung Fiberoptics plans to establish a local plant in northern Mexico this year to meet the growing demand for fiber optic cables in North America. The company has also announced plans to expand its production facilities in Europe to serve the European, African, and Middle Eastern markets.

According to industry experts, the global fiber optic cable market is growing by 10% annually due to the demand for fiber to the home (FTTH) and infrastructure investment in emerging markets. Fiber optic markets are gradually diversifying from developed countries, including Europe, the US, and Japan, to newer markets such as China, South America, Africa, and Southeast Asia, primarily driven by the demand from these growing markets. Consequently, the demand cycle for fiber optic cable is accelerating, while the logistical costs are increasing.

The logistics cost of the smartphone's 2 GHz dual-core processor when shipped by sea is approximately 5% of the retail price, but this figure rises to 20% when air freight is used. Recently, as international telecom providers have implemented shorter delivery times, the reliance on air freight for fiber optic cable companies has been steadily increasing. In particular, delivery times in European markets, which have high demand for fiber optic cables, have been reduced from four weeks to one to two weeks. Samsung Fiberoptics has opted for a local production center strategy to reduce logistics costs and address the shortening demand cycle.

Chairman Lee Geun-myeon commented, "We will acquire new international production centers and expand and reorganize our overseas sales staff to double its size and accelerate our entry into new markets." He added: "We will respond to changes in the multilateral market and promote aggressive marketing to grow and be among the top 5 in the world ranking by 2012."