Chinese mainland fiberglass fabric prices surge, impacting PCB supply chain amid AI demand

Chinese mainland fiberglass fabric manufacturers are increasing prices by 10-15% monthly, with potential for prices to double by the end of 2026. This surge follows over 50% cumulative price increases since 2025. The price hikes are driven by rising costs and tight supply, affecting both high-end and general electronic fabrics. Huatai Securities notes that this indicates a widening shortage from high-end to general products. A substrate manufacturer confirmed that high-end electronic fabric has been in short supply and increasing in price since late 2025, primarily due to increased demand for AI computing. Citigroup analysts predict electronic fabric prices could rise over 25% in 2026, impacting end products like smartphones and laptops. Domestic Chinese companies such as International Composites and Zhongma Technology have made progress in high-end electronic fabrics. Nitto Boseki, a key supplier of T-glass cloth for low thermal expansion electronic cloth (over 90% global supply), will not have new equipment operational until 2027, with only a 20% supply increase expected then. Some manufacturers are shifting production from E-glass to low-dielectric glass cloth, exacerbating the general electronic cloth shortage. Glass fiber cloth, which accounts for about 30% of copper clad laminate (CCL) costs, is essential for PCBs, and its shortage is driving up CCL prices and impacting the PCB supply chain.