Key AI Components - Fiberglass Cloth

The surge in demand for AI chips and high-speed servers is driving the demand for high-end fiberglass cloth. However, constrained by technical barriers, equipment bottlenecks, and yield challenges, the release of new capacity remains slow, resulting in a persistent supply-demand imbalance for critical materials. Consequently, high-end products are expected to remain in short supply in the short term.

Key Highlights

• Demand Surge: Next-generation AI chips and high-speed switches drive the expansion of substrate sizes and increase layer counts, significantly boosting the consumption of specialty fiberglass cloth.
• Supply Bottlenecks: Weaving equipment is monopolized by a single supplier, technical barriers are high, and advanced product manufacturing is complex with restricted yields, leading to a lengthy timeline for capacity expansion.
• Supply-Demand Imbalance: Although various manufacturers are progressively expanding capacity, differences in technology and yield rates mean that critical materials will still face severe shortages in the short term.
• Future Technology: Although quartz glass cloth represents the ultimate solution for extreme transmission performance, its high cost and severe tool wear mean it remains difficult to adopt widely in the short term.