High-end Fiberglass Is Booming, Becoming A Core Material Needed in The Computing Power Sector.
In the entire copper clad laminate (CCL) industry chain, electronic cloth is an indispensable core substrate for manufacturing high-end boards, directly determining the transmission performance and quality of PCB boards. With the large-scale deployment of global AI servers, high-speed communication equipment, and high-end computing hardware, downstream CCL companies have experienced a surge in orders, directly driving a sharp increase in demand for upstream electronic cloth. The industry has officially entered a sustained period of high prosperity, with market prices rising steadily and industry profit margins continuously expanding.
In May 2026, the electronic cloth market saw another price increase. The mainstream 7628 specification ordinary electronic cloth market transaction price remained stable at 6.8 to 7.0 yuan per meter, increasing by another 0.5 yuan per meter this month. Since the price increase began in October 2025, the industry has achieved seven consecutive months of price increases, with a very stable upward trend. Looking back at the starting point of this round of price increases, the initial average market price was only 3.9 yuan per meter. After multiple rounds of price adjustments, the cumulative increase has reached 74%, significantly increasing the cost pressure on mid- and downstream manufacturers.
While the price of ordinary electronic fabric has steadily increased, the market for AI-specific electronic fabric, which is compatible with high-end computing power boards, is experiencing even more volatile demand. Currently, the market price range for Low-Dk low-dielectric fabric, M9 high-end electronic fabric, and rare quartz Q fabric is between 150 and 230 yuan per meter, more than doubling since the beginning of the year. Due to the complex manufacturing process and extremely high technical barriers of high-end electronic fabric, the market's qualified production capacity is very limited, resulting in an extremely tight overall supply. Quartz Q fabric, as a core material for computing chips, has seen its highest market price reach over 230 yuan per meter, with high-end supplies falling short of demand.
The current supply-demand imbalance in the electronic fabric industry is now firmly established. The industry-wide monthly supply gap reaches 8 to 9 million meters, and overall market inventory is at a historical low, with the industry average having only 7 to 10 days' worth of inventory remaining, leaving almost no surplus stock. To ensure stable production materials, leading downstream copper-clad laminate (CCL) manufacturers are locking in their orders in advance, securing production capacity and purchase prices through high prepayments, resulting in a seller-dominated market structure.
Riding the wave of industry growth, Sinoma Science & Technology, with its deep industrial foundation, has firmly established itself as a leader in the electronic fabric industry, fully benefiting from the development dividends brought about by the simultaneous increase in both volume and price. In terms of production capacity, the company's overall annual production capacity of electronic fabric has reached 400 million meters, firmly placing it among the top tier in the industry.
In the high-end low-dielectric electronic fabric sector, where the market is in short supply, the current monthly production capacity remains at 100,000 to 200,000 meters. Simultaneously, the company is accelerating capacity expansion, with a clear plan to expand its high-end Low-Dk electronic fabric production capacity to 20 million meters by 2026. In addition, a new 35 million-meter special electronic fabric production line is planned to officially commence production in the second half of 2026, at which time the company's high-end product supply capacity will be significantly enhanced.
Technology and customer base are the company's core competitive advantages. Sinoma Science & Technology is one of the few domestic companies capable of comprehensively covering Low-Dk first, second, and third generation products, as well as the full range of quartz Q-fiber fabrics, leading the domestic market in technological strength.
The company's third-generation high-end electronic fabric has successfully passed NVIDIA's authoritative certification, successfully entering the core supply chain of high-end computing power. It maintains a stable long-term supply to leading copper-clad laminate (CCL) manufacturers such as Taiguang, Panasonic, and Shengyi, ensuring a solid customer base and sufficient order fulfillment.
Favorable market conditions combined with production capacity advantages have directly driven steady growth in the company's performance. In the first quarter of 2026, the company achieved a net profit of 507 million yuan, a year-on-year increase of 40.15%. The simultaneous increase in both volume and price of the electronic fabric business became the core driving force behind this growth. To further expand its high-end market presence, the company plans a 4.481 billion yuan fundraising plan, with all funds invested in the construction of high-end electronic fabric projects, further solidifying its leading position in the industry.
Looking at the industry's future development trend, the upward trend in electronic fabric prices remains strongly supported. From June to September 2026, there is still room for price increases in the industry. The pace of price increases for ordinary electronic fabric is expected to gradually slow, with the monthly increase narrowing to 0.2 to 0.3 yuan per meter. The overall upward trend will not change. Driven by the long-term rigid demand for global AI computing power, downstream demand for high-end sheet materials remains strong, and the current high-growth cycle in the industry is expected to continue until 2027.
In terms of market conditions, related industry stocks are likely to maintain a high-level fluctuation trend in the short term due to market sentiment. However, the medium-to-long-term development logic is clear, mainly relying on two core advantages: the continued price increase of electronic fabrics and the concentrated release of high-end production capacity.
In summary, the electronic fabric industry is currently in a golden upward development cycle. Low-end products are seeing stable prices and increased revenue, while high-end scarce products are boosting overall profitability, leading to a wave of improved profitability across the entire industry chain.
Against the backdrop of the continuous expansion of the computing power industry, Sinoma Science & Technology, with its advantages in technology, production capacity, and customers, has significant growth potential. Subsequent industry price changes, the progress of new capacity commissioning, and actual downstream orders will be key areas of focus for the entire industry chain.
