Tianfeng Securities·2025-07-06 12:16Investment Rating - Industry Rating: Outperform the Market (maintained rating) [6] Core Viewpoints - The special electronic fabric industry is experiencing high demand driven by the global increase in computing power expectations, with continued upward revisions in the outlook for low dielectric and low expansion electronic fabrics [1][13] - Low dielectric electronic fabric is a high-performance material that reduces energy loss during signal transmission, enhancing signal integrity and speed, primarily used in communication infrastructure and semiconductor packaging [2][14] - Low expansion electronic fabric is mainly applied in high-end mobile phone chip packaging, significantly improving substrate reliability by reducing the expansion coefficient by 35% compared to traditional E-glass [3][24] Summary by Sections Special Electronic Fabric - High-performance special glass fiber fabrics include low dielectric (LowDK) and low expansion (LowCTE) electronic fabrics, with applications in communication infrastructure and semiconductor packaging [13] - Low dielectric fabric is essential for AI servers and switches, with major customers including Nvidia and Arista, showing a revenue growth rate of over 70% for leading companies [14][21] - Low expansion fabric is crucial for high-end chip packaging, with a thermal expansion coefficient close to silicon chips, enhancing reliability [24] Key Companies - China National Materials Technology: Focused on low dielectric electronic fabric, with production capacity expected to increase from 26 million meters to 35 million meters by April 2025, driven by rising demand in AI and communication sectors [29][30] - Macro Technology: Engaged in high-end electronic fabric production, with a recent project expected to enhance capacity and performance, achieving a revenue increase of 29.52% year-on-year in Q1 2025 [32] - International Composite Materials: Early research in special fabrics, capable of elastic production of low dielectric products, with significant advancements in production technology [33] - Fihua: A leading producer of quartz glass materials, with products used in various high-tech fields including optical and semiconductor applications [36] - JianTao Group: Set to launch a low dielectric production line in late 2025, aiming to capture new growth opportunities in AI computing [37] - China Jushi: As a leading player in the glass fiber industry, actively developing low dielectric products to overcome technical challenges [38]