회사 소식 PCB Upstream Q-Cloth Inventory Nearly Depleted

According to Caixin News, the booming AI server market has driven a surge in demand for upstream PCB substrates, with domestic electronic yarn and electronic cloth supply-demand dynamics remaining tight and inventories nearly depleted. In the first half of this year, the industry has already undergone five rounds of price hikes. As of late August, the average price of G75 electronic yarn had surged 53% from the end of May, while mainstream 7628 electronic cloth posted a monthly increase of 17%-18%, with prices doubling from the beginning of the year. Ultra-thin and extremely thin specialty electronic cloths have seen price increases exceeding 140% year-to-date.

The current price surge in electronic yarn/cloth is driven by the combined forces of explosive structural demand from AI computing and rigid supply-side shortages.

On the demand side, the layer count of AI server PCBs has increased significantly, with high-end electronic cloth usage per unit rising 3 to 8 times compared to traditional servers. This is further supported by baseline demand from consumer electronics and automotive PCBs, collectively expanding the market.

On the supply side, leading manufacturers have actively curtailed production of conventional electronic cloth, reallocating capacity toward higher-margin ultra-thin and high-frequency specialty cloths, thereby exacerbating supply constraints for standard specifications. Coupled with strict controls on new kiln additions in the earlier period—and new production lines requiring up to two years to build—short-term capacity cannot be released, leaving the industry's near-zero inventory and tight supply-demand balance unlikely to ease in the near term.

High-end Q-cloth, in particular, has emerged as the core incremental segment in the industry, with technical barriers and profitability far exceeding those of traditional electronic cloth. Q-cloth features ultra-low dielectric constant and dissipation factor, significantly enhancing high-frequency signal transmission efficiency—making it ideally suited for next-generation AI servers, 1.6T/3.2T optical modules, and high-end switch computing hardware. Its usage per unit is 5 times that of traditional servers.

Currently, the global Q-cloth supply has long been monopolized by Japanese companies. However, domestic manufacturers are accelerating technological breakthroughs, with some having already completed customer qualifications and achieved small-volume shipments, paving the way for future mass production scaling.

Looking ahead, with the traditional peak season for the electronics industry in the second half of the year, combined with continued AI infrastructure buildout, electronic yarn/cloth prices are expected to maintain their upward trajectory, reinforcing the industry's volume-and-price dual-growth pattern. In the medium to long term, with new capacity releases lagging behind demand, the industry's high-prosperity cycle is likely to persist.

Institutions project a supply-demand gap of 113 million meters for standard electronic cloth in 2026, with the gap potentially widening further in 2027, alongside accelerating domestic substitution for high-end products.

In terms of A-share market opportunities, investors may prioritize leading electronic cloth manufacturers with ample capacity and a high-end product mix, while also keeping an eye on domestic substitute candidates that have achieved breakthroughs in Q-cloth technology. (Source: Everbright Securities Micro-Insights)

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Source: Everbright Securities Micro-Insights

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