Since September 2025, the entire electronic fiberglass industry chain has entered a price surge. The average price of ordinary electronic yarn has risen to 500-600 yuan/ton, with electronic fabric prices also climbing. For instance, the price of Linzhou Guangyuan 7628 ordinary electronic fabric has increased from 4.1-4.2 yuan/meter to 4.4-4.5 yuan/meter, and the average price of Honghe Technology’s electronic fabric from January to September 2025 reached 4.97 yuan/meter, a year-on-year increase of 33.6%. The price of high-end electronic fabrics such as Low Dk for AI servers has surged over 25%, with some products experiencing delivery times extended to 3-6 months.
Electronic fabric, formally known as “electronic-grade glass fiber fabric,” boasts excellent insulation, strong dimensional stability, high-temperature resistance, and high mechanical strength. It is a key reinforcing material for producing copper-clad laminates (CCL), ultimately utilized in the “electronic yarn – electronic fabric – copper-clad laminate – printed circuit board (PCB)” industry chain, widely applied in consumer electronics, AI servers, automotive electronics, 5G communications, and other fields. For more details, refer to previous content on core materials for PCBs and a comprehensive overview of special electronic fabrics (with list), as well as the multiple benefits of special fiberglass fabrics (with list).
Ordinary electronic fabric is used for conventional PCBs, while high-end special electronic fabrics, such as low dielectric Low Dk/Df electronic fabrics and low thermal expansion coefficient CTE electronic fabrics, are used in AI computing devices and high-frequency communication devices. High-end products face higher technical barriers, requiring special formulations and precision weaving processes, leading to longer customer certification cycles, typically taking 1-2 years, which provides stronger profit resilience.
Market Landscape
In 2024, the global production of electronic yarn is expected to reach approximately 1.2 million tons, with China accounting for 67.4%. High-end electronic yarn production capacity is concentrated among leading companies in Japan and China. The global electronic fabric market size exceeds $5 billion, with the Asia-Pacific region accounting for over 80%, making it the primary consumer end.Ordinary electronic fabric production in 2024 is estimated at around 780,000 tons, with demand driven by the recovery of consumer electronics. From January to September 2025, the domestic PCB output value increased by 5.9% year-on-year, supporting an ordinary electronic fabric production and sales rate of over 90%, with prices steadily rising.High-end special electronic fabrics benefit from the explosive demand for AI computing, with a surge in demand for low dielectric and low thermal expansion coefficient electronic fabrics. The global Low Dk electronic fabric market size is expected to reach $1.8 billion in 2025, a year-on-year increase of 20%, with a domestic production capacity gap of about 30%. Some products are experiencing delivery times extended to 3-6 months, with price increases exceeding 25%.
Driving Logic
Demand Side
The main drivers are AI servers, new energy vehicles, 5G communications, and consumer electronics.
The amount of electronic fabric used in a single AI server PCB is 3-5 times that of a regular server, with global AI server shipments expected to increase by 60% year-on-year in 2025.
The penetration rate of battery management systems and autonomous driving chips in vehicles is increasing, with each new energy vehicle using about 5 square meters of PCB, double that of traditional fuel vehicles, driving demand for ordinary electronic fabric. From January to September 2025, domestic new energy vehicle production increased by 30% year-on-year, supporting stable growth in electronic fabric demand.
In the consumer electronics sector, the construction of 5G base stations and the wave of smartphone upgrades are driving demand for conventional PCBs, with global smartphone sales expected to increase by 7.8% year-on-year in 2025. As a basic material, ordinary electronic fabric shows strong demand resilience.
Supply Side
High-end electronic fabrics need to overcome three major challenges: “low dielectric glass formulation,” “precision weaving technology,” and “customer certification.” The certification cycle for leading PCB customers exceeds one year, making it difficult for new entrants to break through quickly.
In terms of production capacity, approximately 120,000 tons of new electronic fabric capacity is expected to be added in China in 2025, with only 20% of this being high-end products, while high-end demand is expected to grow by over 50% during the same period. The supply-demand gap is difficult to fill in the short term, compounded by the cold repair of some old production lines, further tightening supply.
Policy Side
In September 2025, the China Glass Fiber Industry Association, along with nine companies, launched an “anti-involution” initiative to resist low-price competition and blind expansion. In October, leading companies raised the prices of electronic fabric products by 5%-10%, promoting industry profit recovery. In the first three quarters of 2025, the average gross profit margin of domestic electronic fabric companies increased by 4.4 percentage points year-on-year to 28.3%.
Layout Situation
Honghe Technology: A leading domestic high-end electronic fabric company, with Low Dk electronic fabric technology leading in China, certified by NVIDIA and Broadcom.Feilihua: The only company in China to achieve a fully controllable chain from “quartz sand purification – quartz fiber – quartz fabric (Q fabric),” with Q fabric (third-generation electronic fabric) certified by NVIDIA GB300, and a core supplier of M9-grade copper-clad laminates.Zhongcai Technology: Its subsidiary Taishan Glass Fiber has the second-largest electronic fabric production capacity in China, focusing on special glass fibers for 5G high-frequency copper-clad laminates, with clients including leading PCB manufacturers such as Shiyin Technology and Nanya New Materials.China Jushi: A global leader in fiberglass, with electronic fabric production capacity accounting for 23% of the global total, independently developing ultra-fine yarn technology to break overseas monopolies, deeply binding with communication equipment manufacturers such as Huawei and ZTE.Changhai Co., Ltd.: A rare integrated company in China for electronic yarn, electronic fabric, and resin, leading in ultra-thin electronic fabric technology, benefiting from the lightweight trend in new energy vehicles.Shandong Glass Fiber: Focused on the ordinary electronic fabric sector, with electronic yarn production expected to grow by 19% year-on-year in 2025, supporting thermoplastic yarn capacity, benefiting from the lightweight demand in new energy vehicles, with clients including Jingwang Electronics.Tianzheng Co., Ltd.: A supplier of fiberglass composite materials for electronic fabric substrates, expanding its PCB fiberglass substrate business in 2025, with electronic fabric-related revenue increasing by 84%, deeply binding with downstream electronic material demand.International Composites: A significant player in global fiberglass, with electronic fabric capacity being released from its Changshou base in 2025, focusing on mid-to-high-end products.Jiuding New Materials: Engaged in the manufacturing of fiberglass products, with electronic fabric business achieving steady growth as the industry recovers.Kai Sheng New Energy: Engaged in electronic-grade fiberglass materials, holding a certain market share in ordinary electronic fabric, benefiting from the demand growth brought by the recovery of consumer electronics.Nanbo A: A comprehensive glass enterprise, producing conventional electronic fabric based on advanced glass manufacturing technology, mainly supplying the mid-to-low-end PCB market, with a low business proportion.Jizhong Energy: Through its subsidiary Zhongji Zhongxin Materials, it is engaged in the manufacturing of electronic yarn and electronic fabric, focusing on the mid-to-low-end market to meet the basic needs of the electronics and electrical appliance sectors.Quartz Co., Ltd.: A leading domestic supplier of high-purity quartz sand, the core raw material supplier for Q fabric (third-generation electronic fabric).
This article is compiled based on publicly available information and does not constitute investment advice.
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