Why Is The Price Of Fiberglass Electronic Fabric Continuing To Rise?

In the electronics and information industry chain, electronic fabric, as a core substrate for copper-clad laminates (CCLs), is a key upstream raw material for the PCB industry. The industry's prosperity directly impacts multiple sectors, including new materials, new energy, and AI computing hardware. Entering 2026, the electronic fabric and CCL markets completely broke traditional cyclical patterns, experiencing a strong upward trend with continuous price increases and tight supply, fundamentally restructuring the industry's underlying logic.

From the current tight supply chain situation, the shortage of electronic fabric far exceeds that of CCLs, becoming the most critical bottleneck in the entire industry 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 high-end AI substrates, directly diverting supply from the ordinary electronic fabric market. In the second half of 2025, 1080 specification thin fabric was already in short supply, triggering a chain reaction that led to 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 further amplified the supply-demand imbalance. Leading companies generally saw slower-than-expected new capacity rollout: China Jushi's 50,000-ton kiln, planned for commissioning in July 2026, was affected by factors, and may only release one-third of its capacity in September and October, resulting in very limited short-term growth; Jiantao's 70,000-ton project in Shaoguan, originally planned for commissioning 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 the demand structure has also provided solid support for the industry's prosperity. Currently, downstream demand for copper clad laminates has been completely restructured, with demand from the new energy and charging pile sectors exceeding 40%, and energy storage and photovoltaic sectors accounting for over 15%, becoming the core growth engines; while the demand from traditional consumer electronics and home appliances has fallen from 35% to 25%, resulting in a more stable demand structure. Meanwhile, the proportion of AI-related high-end copper clad laminates and electronic fabric products has steadily increased to 10%, and the upgrading towards high-end products has opened up long-term growth potential for the industry.

Current industry inventory and delivery data more directly confirm the current shortage situation. Copper clad laminate 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-haven inventory. Downstream manufacturers' inventory cycles have been further compressed from the previous 2 months to 1.5-2 months, and raw material reserves are generally at low levels. Product delivery times have also lengthened significantly, from the original 7-10 days to 15-25 days, with long-term contracts and advance inventory building becoming the norm in the industry.

Prices have also been rising steadily. In March and April 2026, the cumulative price increase for copper clad laminates reached 30%, with the market price of 1.5mm thick boards climbing to 200-220 yuan per sheet. Looking at the cost structure of double-sided boards, copper foil accounts for 25%, electronic fabric for 28%, and resin for 29%, indicating a stable cost structure. Currently, the gross profit per sheet of electronic fabric can reach 50-60 yuan, and the net profit margin of the electronic fabric industry remains at 20%-30%. The price increase logic has been fully transmitted to the profit side 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 completely 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 the actual delivery is less than 30%, and a large number of orders have been postponed to 2027. The total delivery volume for 2026 is expected to be less than 600 units. The equipment shortage directly locks in the industry's short-term capacity release.

In terms of product iteration, the value of special electronic fabrics continues to rise. Currently, the industry's monthly production capacity of special electronic fabrics is 3 million meters. The unit price of first-generation fabric is 30-40 yuan/meter; the unit price of second-generation fabric is 120-150 yuan/meter; and the unit price of high-end fabric with low thermal expansion coefficient reaches 200 yuan/meter. However, the mass production progress of high-speed materials in China is still 4-5 years behind that of top international manufacturers, indicating a vast space for domestic substitution.

It's worth noting that the 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 their high-end pricing by leveraging technological barriers, while integrated companies with stable supply chains have greater competitive leverage in this round of price increases.

Looking ahead, the logic behind industry price increases remains strongly supported. Industry insiders predict that the industry may see another round of price increases of up to 10% 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 crucial juncture to verify the sustainability of price increases and the resilience of demand. Given the multiple factors of a persistent supply-demand gap, delayed capacity expansion, and upgrading demand structure, the high-growth cycle of the electronic fabric and copper-clad laminate industries is not yet over, and the performance growth of companies in the industry chain is highly certain.