Introduction

    In 2026, the PCB industry is experiencing an unprecedented supply crisis of upstream materials. Prices of raw materials across the entire industrial chain, ranging from electronic copper foil and electronic glass fabric to high-speed resin and copper-clad laminates (CCL), keep surging, with high-end materials in acute short supply. This is not merely a cyclical fluctuation, but a structural challenge stemming from the prolonged imbalance between surging AI computing power demand and rigid supply-side constraints.

    Confronted with this common industry-wide challenge, our company prioritizes delivery commitments to customers at all times, making every effort to stabilize production and ensure on-time order fulfillment.

I. Market Environment: Acute Shortages Across Four Core Materials 

1. Electronic Copper Foil: Supply-Demand Gap for High-End HVLP Series Nears 50%

    Copper foil serves as the conductive core of copper-clad laminates (CCL), accounting for 30%–40% of the cost of high-end CCL. Driven by drastically elevated signal transmission requirements of AI servers, the market is rapidly shifting from standard copper foil to HVLP (Ultra-Low Profile) grades.

    Currently, global monthly demand for HVLP Grade 4 and higher high-end copper foil stands at 2,500–3,000 tonnes, while effective capacity is merely 1,000–1,100 tonnes, translating to a supply-demand gap of 48%. Mitsui Metals of Japan holds approximately 60%–80% market share in HVLP Grade 2+ and above products with conservative capacity expansion plans; new production capacity is not expected to come online until 2028. Domestic copper foil manufacturers are advancing verification breakthroughs for HVLP Grade 4, yet full-chain qualification takes a minimum of 1.5 years from sample submission.

    In terms of pricing, spot prices of high-end HVLP copper foil have climbed to RMB 380,000–400,000 per tonne since 2026, representing an aggregate increase of over 30%. LME copper prices have risen roughly 20% year-on-year, further lifting the cost baseline.

2. Electronic Glass Fabric: Six Rounds of Price Hikes, Extreme Scarcity of High-End Grades

    Electronic glass fabric acts as the "skeleton" of PCBs, governing the mechanical and dielectric properties of CCL. Since October 2025, electronic glass fabric has undergone six rounds of price increases, with cumulative growth ranging from 47% to 65%. The average price of its primary raw material, electronic yarn, reaches RMB 53.83 per kg, surging 206.55% year-on-year.

    More critically, the supply-demand gap for high-end 3rd-generation AI fabric (Low-Dk3) stands at around 50%, leading to widespread delivery delays. Nittobo of Japan commands roughly 90% of the global market for T-fabric (ultra-fine yarn fabric). Lead times for high-end weaving equipment stretch to 12–18 months, and new capacity is scheduled to launch in mid-2027.

3. High-Speed Resin: SABIC Shutdown as a Black Swan Event; PPE Prices Surge by 400%

    Resin functions as the matrix material of CCL and directly determines dielectric properties (Dk/Df). CCL of Grade M7 and above requires PPO (PPE) resin or hydrocarbon resin; conventional epoxy resin can no longer meet the requirements of AI servers.

    Between March and April 2026, the world’s largest high-end PPE production capacity suffered a devastating blow. SABIC’s Jubail plant, which hosts 70% of global high-purity electronic-grade PPE capacity, suspended full operations due to geopolitical risks and declared force majeure. Domestic spot prices of electronic-grade PPE skyrocketed from RMB 120,000 per tonne at the start of the year to RMB 600,000 per tonne in June, marking a 400% jump within four months. Global stable effective capacity for high-end PPO resin totals approximately 1,700 tonnes, whereas AI-related demand is estimated at 6,000 tonnes throughout 2026–2027, creating a shortage exceeding 4,000 tonnes. For hydrocarbon resins, prices of premium PPO/hydrocarbon resins rise by roughly 5% monthly, and import lead times have extended from 3 weeks to 15 weeks.

4. Copper-Clad Laminates (CCL): Central Integration Hub, Price Growth Outpaces Upstream Raw Materials

    As a composite product fabricated from copper foil, electronic glass fabric and resin, CCL has seen price hikes exceeding those of its upstream raw materials. Since the start of 2026, CCL prices have undergone 4–5 rounds of increases, with cumulative growth above 50%. Standard FR8 laminate has risen from RMB 150–160 per sheet at year-start to over RMB 200 per sheet; high-end M8/M9-grade CCL exceeds RMB 2,000 per sheet.

    The entire industrial chain is currently running at full capacity with robust sales. PCB manufacturers only hold 0.5–1 month of inventory. Suppliers impose order limits for high-end CCL, lead times have extended to 4–6 months, and customer orders are booked through the end of 2027.

II. Outlook: Maintain Composure amid Crisis, Demonstrate Responsibility amid Transformation

    The tight supply-demand landscape for upstream PCB materials is projected to persist until the second half of 2027. Amid this industry-wide supply chain challenge, our company adheres firmly to one core conviction: certainty in customer delivery serves as the litmus test for an enterprise’s comprehensive competitiveness.

We will continue to monitor market developments, dynamically optimize procurement strategies, and steadily strengthen the safety barrier of our supply chain. Regardless of evolving external conditions, our company will go all out to ensure the on-time delivery of every customer’s order. We will stand side by side with all partners to weather industry cycles and jointly embrace a new phase of high-quality development across the sector.