Zhong Guo Neng Yuan Wang·2026-02-12 02:52Core Viewpoint - The report highlights a significant acceleration in capital expenditures driven by AI among major US cloud service providers, which is expected to benefit the computing materials market substantially [1][2]. Group 1: Capital Expenditure Trends - Major US cloud service providers are increasing their capital expenditures significantly, with Meta projecting a capital expenditure of $115 to $135 billion for 2026, representing a year-over-year increase of 73%, focusing on superintelligent labs and AI infrastructure [1][2]. - Alphabet (Google's parent company) anticipates capital expenditures of $175 to $185 billion for 2026, with a year-over-year increase of 97%, primarily for AI functionality optimization and cloud infrastructure expansion [2]. - Amazon expects capital expenditures of approximately $200 billion for 2026, reflecting a year-over-year increase of 52% [2]. - Microsoft indicates that short-term assets (CPU and GPU servers) will constitute about two-thirds of its capital expenditures [2]. - All four major US cloud service providers expect to face supply constraints for critical computing resources in 2026, necessitating accelerated investments and optimized capacity configurations to meet rising demand [2]. Group 2: Transition in Electronic Fabric Production - Traditional electronic fabric production is shifting towards low-dielectric electronic fabric production, with companies like Taiyo stopping the production of certain E-glass electronic fabric series due to market structure changes and special product demand adjustments [3]. - The demand for Low-Dk electronic fabric is increasing, leading to a gradual reduction in the production of traditional E-glass products, with plans to cease production of specific series by 2026 [3]. Group 3: Price Trends in Electronic Fabrics - Prices for traditional electronic fabrics and low-dielectric electronic fabrics are expected to rise, with Showa Denko announcing price increases of over 30% for CCL and PCB due to tight supply and demand for raw materials [3]. - E-glass prices have already seen a 15% increase in January, with an expected further rise of 10-15% in February, while new price negotiations for Low-Dk fabrics aim for a 20% increase [3]. - The supply-demand mismatch, driven by high demand for high-end low-dielectric electronic fabrics, is leading to a contraction in traditional electronic fabric production and subsequent price increases [3]. Group 4: Investment Recommendations - The company remains optimistic about the continued growth in capital expenditures in the computing market, which is expected to drive technological iterations and demand growth, benefiting the computing materials market [4]. - The transition from traditional electronic fabric production to low-dielectric electronic fabric production is seen as a critical juncture, with anticipated price increases for both types of fabrics [4]. - Companies to watch include Zhongcai Technology, International Composites, Honghe Technology, and Feilihua [4].