Latest Industry Trends in Fiberglass Electronic Cloth

I. Soaring Prices: Monthly Price Adjustments, Across-the-board Price Hikes

 

In 2026, electronic fabric prices officially entered a period of monthly increases, rising for four consecutive months and reaching a new high in recent years.

 

- Standard Fabric: Core model 7628 is priced at 6.2-6.5 yuan/meter, 2116 thin fabric at 7.6 yuan/meter, and 1080 ultra-thin fabric at 7.9 yuan/meter, representing a cumulative increase of approximately 30%-50% compared to the low point in October 2025.

 

- High-end AI-specific Fabric: Low-Dk second-generation low-dielectric fabric is priced at 160 yuan/meter, more than double the price at the beginning of the year; Low-CTE, Q fabric, and ultra-thin fabric are extremely scarce, with delivery cycles exceeding 9 months.

 

- Transmission Effect: Leading copper-clad laminate manufacturers simultaneously raised prices by 10% at the end of April, clearly indicating a tight supply of electronic fabric, with cost pressures rapidly being passed on to downstream industries.

 

II. Supply and Demand Imbalance: The AI ​​Boom Encounters a Weaving Machine Bottleneck

 

- Explosive Demand: The number of PCB layers in AI servers has surged from 14-24 layers to 20-30 layers, requiring 3-5 times more electronic fabric per unit and increasing value 8-12 times compared to traditional servers. Global demand for high-end fabric is projected to exceed 200 million meters by 2026, with a shortage of 30%-50%.

 

- Supply Bottleneck: The core bottleneck lies in high-precision air-jet looms. Global supply is limited, and new order lead times are as long as 18-24 months. Almost no new capacity is expected to be released in 2026. Industry leaders have only 7-10 days of inventory (normally 2-3 months), and China Jushi has only one week's inventory of ordinary fabric, resulting in full production and sales, and supply falling short of demand.

 

- Structural Squeeze: Manufacturers prioritize the production of high-margin, high-end fabrics, passively reducing ordinary fabric production capacity, creating a tight supply situation across the entire industry, with both high-end and ordinary fabrics in short supply.

 

III. Capacity Expansion: Chinese Companies Lead the Way, with a Concentrated Release Expected by 2027

 

- China Jushi: Its Huaian Zero-Carbon Smart Base ignited in March, adding 100,000 tons of electronic yarn and 390 million meters of electronic fabric. This is the world's largest single production line, with 30% producing high-end thin fabrics and operating at 100% green electricity. Its global market share will increase from 23% to 28%.

 

- Expansion Pace: 2026 will primarily see the release of existing capacity, with a concentrated surge in mainland China's capacity in 2027. Taiwanese and Japanese manufacturers will expand slowly, with new capacity from companies like Nittobo only coming online after 2027.

 

- Conclusion: A tight supply is expected throughout 2026, with supply and demand gradually easing in the second half of 2027.

 

IV. Technological Upgrades: High-End, Ultra-Thin, and Low Dielectric Properties Become Mainstream

 

- Standard E Fabric Contraction: Ordinary fabric capacity is shrinking, and prices are rising; Low-Dk, Low-CTE, ultra-thin, and Q-fabric are becoming the core growth drivers.

 

- Accelerated Domestic Substitution: Chinese companies have made breakthroughs in high-end technologies such as Low-Dk 2nd generation and low thermal expansion, obtaining certifications from leading companies like NVIDIA and Huawei. Japanese and Taiwanese manufacturers are gradually withdrawing from ordinary fabrics and focusing on high-end production.

 

- Technological Barriers: Ultra-thin fabrics (≤28μm), high modulus, and ultra-low loss products have gross profit margins exceeding 60%, becoming the core engine of profitability.

 

V. Explosive Performance: Leading Companies' Profits Soar, Sector Value Reassessed

 

In the first quarter of 2026, electronic fabric companies collectively experienced a surge in performance.

 

- China Jushi: Q1 net profit is expected to increase by 60%-80%, with both volume and price of electronic fabrics rising, and the proportion of high-margin products increasing.

 

- Honghe Technology: Q1 net profit of 140 million yuan, a year-on-year increase of 354%, with special fabric revenue increasing 13 times and a gross profit margin reaching 55.65%.

 

- Sinoma Science & Technology and International Composites: High-end fabrics are operating at full capacity and selling at full speed, with net profit increasing more than 4 times year-on-year. The sector's average increase in April exceeded 40%.

 

VI. Trend Outlook: Continued High Prosperity, Deepening Domestic Substitution

 

- Short-term (2026): Prices continue to rise, inventory levels are low, and profits are growing rapidly; the bottleneck in looms will persist throughout the year.

 

- Medium-term (2027): China's production capacity will be released in a concentrated manner, supply and demand will gradually balance, and competition in the high-end market will intensify.

 

- Long-term: AI computing power, 5.5G, and automotive electronics will drive continued demand growth; high-end, functional, and green technologies will be the main themes, and Chinese leading companies will continue to enhance their global influence.