What is the current status, trends, and market prospects of the electronic-grade fiberglass cloth industry?

In today's era of explosive growth in AI computing power and the imminent rollout of 6G communication, the invisible substrate that determines the speed of the digital world is standing at the forefront of the industry: electronic-grade fiberglass cloth-hailed as the "mother of the electronics industry." It forms the core framework of PCBs and copper-clad laminates, directly impacting chip signal transmission and hardware stability. Since 2025, the industry has experienced a strong rebound from its cyclical lows, with high-end products facing supply shortages and rising prices. This article analyzes the industry from three perspectives: current status, trends, and future prospects.

 

I. Industry Status: AI Drives Supply and Demand Restructuring, High-End Products See Simultaneous Increase in Volume and Price

 

1. Rapid Market Growth

The global electronic cloth market was approximately $8.6 billion in 2024 and is projected to reach $18.2 billion by 2030, representing a CAGR of 13.5% from 2024 to 2030. The domestic market is also expanding simultaneously, reaching nearly 30 billion yuan in 2025, with high-end products accounting for over 40%.

 

2. Tight Supply and Demand, Prices Continue to Rise

Demand for AI servers and high-speed switches is surging, leading to a structural shortage of high-end electronic fabric (models 1080/2116/7628). The price of ordinary 7628 electronic fabric rose from 4.15 yuan/meter in September 2025 to 6.5 yuan/meter in April 2026, an increase of over 56%. Thin and ultra-thin fabrics saw even larger increases, with inventory calculated weekly.

 

3. Competitive Landscape: Domestic Leaders Rise, Global Concentration Increases

The top five global manufacturers hold a 68.5% market share. China Jushi (world's largest capacity, 1.2 billion meters/year, 28% market share), Honghe Technology (leading ultra-thin fabric manufacturer), and Sinoma Science & Technology (specialty electronic fabric) are leading domestic substitution. In March 2026, Jushi's Huai'an global largest electronic fabric production line (390 million meters/year) will be operational, further strengthening its leading position.

 

II. Industry Trends: Three Main Themes – High-End, Ultra-Thin, and Green Development

 

1. Product Structure: Leap Towards Low-Dk/Low-CTE/Q Cloth

- Ultra-Thin: 9μm/4μm ultra-thin cloth breaks the monopoly, adapting to AI carrier boards.

- Low Dielectric (Low-Dk): Reduces signal loss, a standard feature in high-speed communication and AI servers.

- Low Expansion (Low-CTE): Adapts to advanced Chiplet packaging.

- Quartz Q Cloth: The optimal solution for ultra-high frequency; NVIDIA GB300 uses 18-24 meters per unit.

 

2. Domestic Substitution Enters Golden Age

High-end electronic cloth imports are expensive and supply is unstable. Domestic leaders have broken through core technologies and obtained certifications from NVIDIA and TSMC. The "15th Five-Year Plan" supports domestic production; 2026-2028 is a critical period for substitution.

 

3. Green and Intelligent Manufacturing Becomes Standard

Jushi's Huai'an base boasts 100% green electricity coverage and annual carbon emission reduction of 400,000 tons. The industry is transforming towards zero-carbon, intelligent, and efficient manufacturing, enhancing its competitiveness.

 

III. Market Prospects: Long-Term High Prosperity, Three Growth Engines

 

1. AI Computing Power Revolution (Core Engine)

High-end AI servers have seven or eight PCB layers, using 5-8 times more electronic fabric than ordinary servers. Continued investment in computing infrastructure ensures long-term high demand growth.

2. New Energy and Automotive Electronics (Stable Growth)

Upgrades in the electronic and electrical architecture of new energy vehicles lead to a 30%+ increase in PCB usage. Photovoltaics and wind power drive demand for high-modulus electronic fabric.

3. 6G and Advanced Packaging (Future Breakthrough Point)

6G is driving a surge in demand for high-frequency and high-speed materials, with Low-Dk/Q fabric increasing by over 15% annually. Advanced packaging (Chiplet/2.5D/3D) is boosting demand for ultra-thin/low-expansion fabric.

 

The electronic fabric industry is experiencing a triple resonance of cyclical recovery, technological upgrades, and domestic substitution, transforming it from a traditional material into a core sector for AI computing power. Short-term supply and demand tightness supports high prices; in the medium to long term, high-end products and domestic production open up growth opportunities. From 2026 to 2030, leading companies with advantages in technology, production capacity, and cost will dominate the market and share in the benefits of industry expansion.