Focusing on products and industry sectors, how do the five listed electronic fabric companies cultivate the industry?

High-end electronic fabrics are no longer the ordinary industrial electronic fabrics commonly found in the composite materials industry; they are products that are in high demand and have extremely high value in the current AI industry. Currently, high-end electronic fabrics mainly fall into three product categories: 4μm-9μm ultra-thin electronic fabrics, Low-Dk low-dielectric electronic fabrics, and high-end quartz electronic fabrics. These high-end products, with their advantages of low dielectric constant, thin and light material properties, and high-frequency and high-speed transmission capabilities, are widely used in high-end electronic products such as AI chips, computing server motherboards, high-speed optical modules, and high-end communication equipment. Their product value and profit far exceed those of traditional ordinary fiberglass products, making this a new sector that many industries have refocused on in the past two years.

In the domestic industry, there are not many listed companies with the capability for enterprise certification and mass production in the high-end electronic fabric sector. These companies basically control the main production capacity and most important customer resources for high-end electronic fabrics in China. The following five listed companies are the main competitive players in the industry:

1. Honghe Technology is a globally recognized leader in the ultra-thin and ultra-thin electronic fabric industry. The company has two mainstream high-end specifications: 4μm and 9μm, and its global market share consistently ranks among the top in the industry. The company possesses valuable technical experience accumulated over many years in the field of high-end precision weaving. Its products have been among the first to successfully pass relevant certifications from globally renowned companies such as NVIDIA and TSMC, and it has deeply penetrated the core supply chain of AI chip substrates. Leveraging its high-precision manufacturing processes, the company's high-end electronic cloth business has consistently maintained high profitability, making it one of the best companies in China in terms of both technology and market presence in the ultra-thin electronic cloth sector.

2. Feilihua, with its high production volume, firmly holds a dominant position in the quartz electronic cloth industry and is currently the only listed company in China to achieve large-scale mass production of large-format quartz Q-fiber cloth. Quartz electronic cloth, with its excellent high-frequency transmission performance, is an irreplaceable core material for 1.6T and above high-speed optical modules and high-end precision electronics. Its price far exceeds that of conventional electronic cloth, resulting in substantial profit margins. Currently, the company's products not only occupy a large share of the global market but have also successfully obtained enterprise certifications, giving it an irreplaceable leading position in the high-end optical communication industry.

3. China Jushi, as a global leader in the fiberglass industry, possesses significant industrial cluster advantages and a mature fiberglass supply chain, enabling it to rapidly enter the high-end Low-Dk electronic fabric industry. The company boasts a massive overall electronic fabric production capacity, strong cost control capabilities, and robust R&D strength. Its second-generation low-dielectric electronic fabric has successfully passed NVIDIA's official certification, fully meeting the needs of next-generation AI server substrates. The completion of its zero-carbon intelligent production base further enhances the company's controllable production capacity and costs in the high-end electronic fabric sector.

4. Sinoma Science & Technology's subsidiary, Taishan Fiberglass, with its mature special fiberglass R&D system, has become the company with the most comprehensive and long-standing presence in the domestic low-dielectric special electronic fabric market, achieving full coverage of all categories of low-dielectric electronic fabrics from generation one to generation three. In an era of rapid changes in high-end computing hardware, the company's second-generation Low-Dk electronic fabric has successfully passed NVIDIA's high-end server model certification, precisely adapting to the market demands of high-end computing motherboards and high-end communication boards. Its product technology iteration speed keeps pace with industry trends, continuously capturing incremental market share in the high-end market.

5. The international composite materials company is expanding into the second-generation low-dielectric thin and ultra-thin electronic fabric field. Its products have long met the production needs of mid-to-high-end copper clad laminates (CCLs), and it has also completed qualification certifications for leading computing power companies. The company has long-term and positive cooperation with leading domestic CCL companies such as Shennan Circuits and Shengyi Technology, maintaining stable customer resources. Currently, its high-end electronic fabric orders are full, and production capacity will continue to be tight, demonstrating strong and stable market growth in the mid-to-high-end electronic fabric segment.

Besides the five core leading companies mentioned above, many other companies in the electronic fabric industry supply mid-to-high-end electronic fabric products, rapidly improving the overall industry development. For example, Changhai Co., Ltd. mainly supplies general-purpose mid-to-high-end electronic fabrics, with stable production capacity and a high-performance-to-price ratio strategy, adapting to the mid-range PCB market. Shengyi Technology, as a leading CCL company, adopts an integrated supply chain model, independently developing and producing high-end electronic fabrics for its own use, thus controlling raw materials and reducing production costs.

From the current overall situation of the electronic fabric industry, the high-end electronic fabric segment has overcome significant technological, certification, and production capacity barriers. Leading companies possess core qualifications and stable orders for high-end electronic fabrics, making it difficult for new entrants to overtake them in the short term. Coupled with the continued growth in demand from downstream industries such as AI computing power and high-speed optical communication, the tight supply and demand situation for high-end electronic fabrics is unlikely to change in the short term, and the industry's profitability is expected to remain high.

Based on their different product advantages, companies have very clear strategic positioning. In specific industry segments, it's crucial to focus on indicators of product sufficiency. For industry practitioners and supply chain investors, understanding the positioning of each company's core products and industry segment layout is essential to accurately grasping the benefits of the industry's continued growth.