This is a very professional and pertinent question. AI PCBs (printed circuit boards for artificial intelligence servers, high-speed switches, and other devices) have extremely stringent requirements for upstream materials, with the core focus on “ultra-low loss.” 1. The main manufacturers producing ultra-low loss fiberglass used in AI PCBs are concentrated among major companies with deep technical accumulation, including: 1. China Jushi (600176.SH) • Position: The absolute leader in global fiberglass. Its product line is comprehensive, with significant investment in electronic-grade fiberglass yarn and cloth. • Technology: It has independently developed E9 ultra-high modulus fiberglass, which achieves top global levels in modulus, strength, temperature resistance, and corrosion resistance, making it perfect for the stringent performance requirements of the semiconductor, 5G, and AI fields. E9 fiber is a key reinforcing material for manufacturing very low loss (VLL) and ultra-low loss (ULL) grade copper-clad laminates. 2. Honghe Technology (603256.SH) • Position: The purest electronic fiberglass cloth stock in the A-share market, specializing in the R&D, production, and sales of mid-to-high-end electronic-grade fiberglass cloth. • Technology: Its core advantage lies in high-end electronic cloth. The company has successfully mass-produced and supplied ultra-fine yarn and ultra-thin cloth, breaking through the technical barriers of high-end electronic cloth, with products widely used in high-speed, high-frequency PCB fields. It is a major force in replacing imports in the high-end electronic cloth sector, directly benefiting from the high-end demand brought by AI servers. 3. Taiwanese and overseas giants • Companies like Taconic and Kingboard have a long history and leading technology in the high-end electronic cloth sector, being traditional important suppliers. • American AGY and Japan’s Nittobo are also core players in the global high-end electronic yarn and cloth market. Summary: In the A-share market, China Jushi and Honghe Technology are the most representative listed companies producing high-end fiberglass cloth required for AI PCBs. China Jushi excels in core glass formulations and yarn, while Honghe Technology excels in cloth weaving and subsequent processing. 2. Which listed company benefits the most? This is a question that needs to be viewed in layers. The order and degree of benefits in the industrial chain vary. First tier: The most direct and core beneficiaries — copper-clad laminate (CCL) manufacturers. Answer: Huazheng New Materials (603186.SH), Shengyi Technology (600183.SH) • Reason: Fiberglass cloth is only one of the three main materials (fiberglass cloth, resin, copper foil) used to manufacture copper-clad laminates. CCL manufacturers integrate these materials through complex chemical and process technologies to produce final products that meet specific loss levels (such as Low Loss, Very Low Loss, Ultra Low Loss). • Value: The technical barriers and added value in the copper-clad laminate segment are far higher than those in single fiberglass cloth manufacturing. They directly face PCB manufacturers, and their product pricing power and profit margins will significantly increase under the drive of AI demand. • Company analysis: ◦ Huazheng New Materials: Aggressively positioned in the high-speed, high-frequency copper-clad laminate sector, its H5 series and other products have entered the supply chains of several mainstream communication equipment manufacturers, making it one of the core beneficiaries of the AI server demand explosion. ◦ Shengyi Technology: The absolute leader in domestic copper-clad laminates, with comprehensive technology and significant scale advantages, its high-speed product series also deeply participates in the server market, allowing it to fully enjoy industry dividends. Second tier: Key material suppliers — high-end electronic fiberglass cloth/yarn manufacturers. Answer: Honghe Technology (603256.SH), China Jushi (600176.SH) • Reason: They are upstream of CCL manufacturers. The growth in AI copper-clad laminate demand directly drives the demand for high-end electronic cloth. However, their products are relatively more standardized, and their bargaining power and profit elasticity are usually slightly lower than those of CCL manufacturers that can integrate multiple materials and impart special properties. • Company analysis: ◦ Honghe Technology: Its product structure is highly focused, with a high proportion of high-end electronic cloth, potentially leading to greater performance elasticity. ◦ China Jushi: Electronic yarn and cloth are important components of its business. Although its product line is broad and it is difficult to isolate the contribution from AI, as a global leader, the growth in shipments of its high-end products will be very considerable, with strong certainty of benefits. Third tier: Full industrial chain giants and followers. Answer: Changhai Co., Ltd. (300196.SZ) and others • Reason: As mentioned earlier, Changhai Co., Ltd. also produces electronic yarn and cloth, but its product structure is primarily focused on fiberglass mats (used in automotive, construction materials, etc.), with a relatively low proportion of electronic materials, and its current products may be more concentrated on mainstream specifications. It will benefit from the overall improvement in the PCB industry but is not the core beneficiary of high-end demand driven by AI. Summary of company codes: Company Code Company Name Main Business Benefit Level and Reason 603186.SH Huazheng New Materials High-speed, high-frequency copper-clad laminates Most benefited. Directly provides the core substrate for AI server PCBs, with high technical barriers and strong premium capability. 600183.SH Shengyi Technology Copper-clad laminates (full series) Most benefited. Industry leader, with scale and technology advantages, deeply bound to downstream major clients. 603256.SH Honghe Technology High-end electronic-grade fiberglass cloth Very benefited. High-end electronic cloth leader, a key upstream supplier for CCL manufacturers. 600176.SH China Jushi Fiberglass (including electronic yarn/cloth) Very benefited. A giant in electronic materials, with high-end products (such as E9) in high demand. 300196.SZ Changhai Co., Ltd. Fiberglass and products (mainly mats) Indirectly benefited. Benefits from the overall industry prosperity but not a core target for high-end demand. Final conclusion: If you want to find the “most benefited” listed companies from the AI PCB industrial chain, you should first focus on the leading companies in the copper-clad laminate segment, [Huazheng New Materials] and [Shengyi Technology]. Their products directly determine the performance of PCBs, occupying a more core position in the industrial value chain, with the greatest profit elasticity. Next are the high-end material suppliers [Honghe Technology] and [China Jushi].
