Introduction: The Neglected “Bottleneck” Link is Ushering in a Super Cycle

In the past 18 months, besides GPUs and HBM, the most attention-grabbing focus in the electronic materials industry has been fiberglass electronic fabrics—especially low-dielectric (Low-Dk), low-thermal-expansion (Low CTE), and quartz fabrics.

If you are in the PCB or CCL supply chain, you must have felt the “fabric rush” since 2025. From the initial shortage in 2025 to the full-blown explosion in 2026, the specialty electronic fabric market has entered an unprecedented supply shortage cycle. What is driving this feast? How will the landscape evolve?

I. Global Perspective: Why is “Fabric” So Hard to Find?

The “Performance Wall” of AI Computing Power

The iteration of AI servers (such as the NVIDIA Rubin series) and 1.6T switches has placed extreme demands on signal transmission rates. The high dielectric constant (Dk) and loss (Df) of traditional electronic fabrics have become bottlenecks, forcing the supply chain to adopt Low-Dk second-generation fabrics or even quartz fabrics (Q fabrics).

A Hidden Hero for Advanced Packaging (CoWoS)

With the widespread adoption of Chiplet technology, IC substrates face significant risks of thermal expansion mismatch. Low CTE electronic fabrics effectively solve packaging warpage problems, becoming a key material for AI chip packaging. Nittobo, a major global supplier, has seen its production capacity rapidly stretched to capacity.

Supply-Side Ceiling Effect

Equipment Bottlenecks: Long delivery cycles and limited global supply of high-end weaving machines (such as the Toyota JAT910) directly restrict the speed of capacity expansion.

Raw Materials and Precious Metals: The soaring price of platinum has significantly increased the investment cost of spinnerets; the high-purity quartz sand resources required for quartz fabric are highly concentrated and extremely difficult to mine.

II. Current Status of the Domestic Market: A “Golden Window” for Domestic Substitution

2025-2026 will be a “golden age” for Chinese mainland electronic fabric manufacturers.

Structural Shortages: Due to the conservative expansion of Japanese and Taiwanese manufacturers, leading domestic manufacturers such as Taishan Fiberglass and Grace Fabric Technology seized the opportunity to enter the high-end supply chain, accelerating the certification and volume increase of Low-Dk and Low CTE products.

Price Transmission: Currently, the prices of Low CTE and Low-Dk second-generation fabrics remain firm, even driving a price recovery in ordinary 7628 electronic fabrics (reaching over 4.1 yuan/meter in January 2026), significantly improving industry profitability.

III. Competitive Landscape and Advantages Analysis of Domestic Suppliers (“Seven Warring States”) In this boom cycle, it is no longer a solo performance by roving giants, but an era of “technology is king” where specialization and scale coexist:

1. Taishan Fiberglass (affiliated with Sinoma Science & Technology)

Advantages: State-owned enterprise background, strong R&D capabilities. After the first-generation Low-Dk reached mass production, it began to accelerate its penetration into the Low CTE field in the second half of 2025. With a complete product matrix, it is one of the main forces undertaking Nittobo’s overflow orders.

Highlights: 1. As a core subsidiary of Sinoma Science & Technology, leveraging the group’s resources, it boasts extremely fast verification speed and is currently the biggest beneficiary of the localization of Low CTE.

2. China Jushi Group

Advantages: A global leader in scale, possessing extremely strong cost control capabilities. It holds absolute sway in the ordinary electronic cloth (7628) field (market share 20%-30%).

Highlights: Although its high-end development started slightly later, its massive production capacity allows it to quickly switch to mid-range markets through technological upgrades, capitalizing on cost advantages to reap profits in the mid-range market amidst the “high-end capacity squeezing out low-end capacity” environment.

3. Grace Fabric Technology Co., Ltd.

Advantages: Focused on the high-end thin cloth field, with deep technological accumulation. It is one of the very few domestic manufacturers capable of stably mass-producing second-generation Low-Dk and Low CTE products. Its products have been verified and shipped in batches by high-end CCL customers such as Taiguang and Lianmao.

Highlights: A “small but beautiful” cutting-edge player, it is also at the forefront of forward-looking layout in quartz cloth, possessing the highest technological barriers.

4. Henan Guangyuan New Materials

Advantages: A dark horse among private enterprises, aggressively expanding production. It has planned multiple Low-Dk production lines, focusing on solving the “bottleneck” problem of high-end electronic cloth, offering extremely high cost-effectiveness in specific niche markets.

Highlights: Rapid capacity release; 2026 is a key year for its concentrated capacity expansion.

5. Taiwan Glass & PFG Fiberglass

Advantages: Established players, long-term dominance in the high-end market, mature and stable technology, and a regular choice for major international clients.

Disadvantages: Relatively conservative expansion decisions; in this round of explosive growth driven by AI, its capacity was quickly filled, and its expansion speed is slower than mainland competitors, facing the risk of market share erosion.

IV. Future Trends: The “Decisive Battle” of Quartz Cloth (Q Cloth)

Looking ahead to the second half of 2026 and beyond, the key to victory lies in quartz cloth.

With the gradual application of CCLs of M9 grade and above (such as Panasonic’s M9 standard) to next-generation GPUs, quartz fiber, due to its extremely low dielectric loss (1/10000 level), has become a rigid demand.

Domestic Layout: Feilihua, through its subsidiary Zhongyi New Materials, is a leading integrated quartz fiber manufacturer in China, possessing a complete industrial chain capability from quartz sand to quartz cloth, and is one of the few companies globally capable of stable mass production.

Conclusion: Whoever masters the purification and fine weaving technology of high-purity quartz sand will win the highest profit zone of the next decade.

Conclusion: The boom in 2025-2026 is not accidental; it represents a concentrated upgrade of the underlying materials for AI hardware. For industry peers, this is not only a frenzy caused by shortages, but also a grand review of technological strength. In this wave of domestic substitution, Chinese companies with technological breakthrough capabilities are shifting from “following” to “leading.”

We eagerly await comments from experienced professionals and peers in the comment section. Do you think the shortage of Low-DK will ease in the second half of 2026? Will the application of Q-cloth be delayed due to cost issues?