Why is the price of fiberglass electronic cloth continuing to rise?

Despite the off-season, the industry is experiencing a surge in prices, with the electronic fabric and copper-clad laminate (CCL) supply chains showing an unexpectedly strong performance. Many industry players have clearly felt that market shortages, longer delivery times, and rising raw material prices have become the norm. This is no longer a simple seasonal supply and demand fluctuation, but rather a structural transformation resulting from multiple factors, including the explosive growth of AI computing power, delayed capacity deployment, and bottlenecks in high-end equipment.

In the electronics and information industry chain, electronic fabric, as the core substrate of CCL, is a key upstream raw material for the PCB industry. Its prosperity directly impacts multiple sectors such as new materials, new energy, and AI computing hardware. Entering 2026, the electronic fabric and CCL markets have completely broken traditional cyclical patterns, experiencing a strong market characterized by continuous price increases and tight supply, fundamentally restructuring the industry's underlying logic.

From the current tense situation in the supply chain, the shortage of electronic fabric far exceeds that of CCL, making it the most critical bottleneck link in the entire supply chain. Since the beginning of 2026, the domestic electronic fabric market has officially entered a supply-demand imbalance, with the monthly supply-demand gap remaining stable at 8 to 9 million meters, and the tight supply situation showing no signs of easing.

The core of this shortage is the explosive growth in orders from the AI ​​computing power industry chain. A large amount of high-end electronic fabric production capacity has been squeezed out by AI high-end substrates, directly diverting supply from the ordinary electronic fabric market. In the second half of 2025, 1080 specification thin fabric had already entered a period of sustained shortage, leading to a chain reaction of shortages across all specifications of thin fabric in upstream and downstream industries, significantly increasing the difficulty for downstream manufacturers to procure goods.

Lagging capacity expansion has further amplified the supply-demand contradiction. The pace of new capacity implementation by leading companies is generally slower than expected: China Jushi's 50,000-ton kiln, planned to be ignited and put into operation in July 2026, may only release one-third of its capacity in September and October due to disruptions, resulting in very limited short-term incremental capacity; Jiantao's 70,000-ton project in Shaoguan, originally planned to be put into operation by the end of 2026, may have its full capacity release delayed until 2027 due to delays in the arrival of imported weaving machines, making it difficult to fill the market gap within the year. The profound transformation of demand structure has also solidified the industry's prosperity. Currently, downstream demand for copper-clad laminates (CCLs) has been completely restructured. Demand from the new energy and charging pile sectors has exceeded 40%, while energy storage and photovoltaic sectors account for over 15%, becoming the core growth engines. Meanwhile, the demand from traditional consumer electronics and home appliances has fallen from 35% to 25%, resulting in a more stable demand structure. At the same time, the proportion of AI-related high-end CCLs and electronic fabric products has steadily increased to 10%, and high-end upgrades have opened up long-term growth potential for the industry.

Current industry inventory and delivery data more directly confirm the current shortage situation. CCL industry inventory has fallen to a historical low, with total inventory at approximately 1 million sheets, less than 10% of monthly production, indicating a critical shortage of safe inventory. Downstream manufacturers' inventory cycles have been further compressed from 2 months to 1.5-2 months, and raw material reserves are generally at low levels. Product delivery times have also been significantly extended, from 7-10 days to 15-25 days, with long-term contracts and advance inventory building becoming the norm in the industry.

Prices have continued to rise, with copper-clad laminate (CCL) prices increasing by 30% cumulatively from March to April 2026, and the market price for 1.5mm thick CCLs climbing to 200-220 yuan per sheet. Looking at the cost structure of double-sided boards, copper foil accounts for 25%, electronic cloth for 28%, and resin for 29%, resulting in a stable cost structure. Currently, the gross profit per sheet can reach 50-60 yuan, and the net profit margin of the electronic cloth industry remains at 20%-30%. The price increase logic has been fully transmitted to the profitability of enterprises, strongly supporting performance expectations.

The biggest pain point in the industry lies in the bottleneck of high-end equipment. High-end weaving machines are entirely dependent on foreign companies, with a global annual production capacity of only 2,000 units. Domestic companies have a strong desire to expand production, with some planning to purchase 1,000 units, but actual delivery is less than 30%, with a large number of orders postponed to 2027. The total delivery volume for 2026 is expected to be less than 600 units, directly locking up the industry's short-term capacity release.

In terms of product iteration, the value of specialty electronic cloths continues to rise. Currently, the industry's monthly production capacity of specialty electronic fabrics is 3 million meters. First-generation fabrics are priced at 30-40 yuan/meter; second-generation fabrics at 120-150 yuan/meter; and high-end fabrics with low thermal expansion coefficients reach 200 yuan/meter. However, the domestic mass production progress of high-speed materials lags behind top international manufacturers by 4-5 years, indicating a vast potential for domestic substitution.

It is worth noting that continuous price increases have triggered resistance from downstream industries. After multiple rounds of price hikes since March 2026, some downstream factories have begun to refuse orders and adopt a wait-and-see approach. In terms of industry structure, Taiwanese and Japanese companies maintain high-end pricing based on technological barriers, while integrated companies with stable supply chains have greater competitive leverage in this round of market activity.

Looking ahead, the industry's price increase logic remains strongly supported. Industry insiders predict that the industry may see another 10% price increase in May 2026, with the overall upward trend likely continuing into 2027. The upcoming June, traditionally a slow season for the industry, will be a key point in verifying the sustainability of price increases and the resilience of demand. Given the multiple factors including the difficulty in narrowing the supply-demand gap, the lag in capacity expansion, and the upgrading of demand structure, the high-growth cycle of the electronic fabric and copper clad laminate industry has not yet ended, and the performance growth of companies in the industrial chain is highly certain.