Corning building new factory in response to broadband internet boom

Jun 11, 2023

A Corning fiber optic access point in 2017. Photo: Victor J. Blue/Bloomberg via Getty Images

Corning said Tuesday it will build a new manufacturing facility outside Phoenix in response to a spike in demand for fiber-optic cable as the U.S. government ramps up a $42.5 billion internet funding program.

Why it matters: Building high-speed internet service to connect all Americans won't happen without the right equipment — and, thanks to the infrastructure funding law's "Buy America" provisions, it will need to be largely U.S.-made.

Driving the news: The fiber-optic cable factory will be built in Gilbert, Arizona. It's expected to open in 2024 and will add about 250 jobs.

What they're saying: Corning said the new facility brings investments in fiber and cable manufacturing to more than $500 million since 2020 and will help to double its capacity to serve the North American market.

Between the lines: Corning, the 170-year-old company best known for glass, is poised to get a big boost in broadband business. It's the largest U.S. manufacturer of fiber optic cable at a time when U.S. law requires providers to use domestic-made products to receive federal funding.

The intrigue: Broadband industry trade groups have sought waivers from the Buy America rules, arguing "no combination of network products" will meet the requirements.

The big picture: AT&T is focusing on a fiber-first strategy for its expansion plans, with a goal of reaching 30 million locations with fiber by 2025.