Core Viewpoint - The article emphasizes the critical role of high-end electronic fabric in supporting AI computing power, highlighting the dominance of Japanese companies in this sector and the emerging competition from Chinese firms. Group 1: Importance of Electronic Fabric - Electronic fabric is likened to the chassis of a supercar, essential for the performance of AI servers, which rely on advanced chips [7][10] - High-end electronic fabric is made from electronic-grade glass fiber, integrating cutting-edge materials science [8] Group 2: Market Dynamics - Japanese companies like Nitto Denko, Asahi Kasei, and AGC dominate nearly 70% of the global high-end electronic fabric market, creating an oligopoly [9] - These companies do not manufacture AI chips but control a crucial segment of AI computing power [10] Group 3: Competitive Landscape - Chinese companies are primarily engaged in the mid-to-low-end market, lacking the technological advancements of their Japanese counterparts [12] - Japanese firms have built a formidable barrier to entry through decades of research and development, creating a dense patent network [17] Group 4: Innovation and Breakthroughs - Chinese companies are beginning to challenge the Japanese monopoly, with firms like Honghe Technology successfully producing ultra-thin electronic fabric [32] - The development of low-dielectric fabric has also seen breakthroughs from companies like Linzhou Guangyuan, marking a significant shift in the competitive landscape [36] Group 5: Material Revolution - The next generation of quartz electronic fabric is emerging as a critical material for AI, with companies like Feilihua leading the charge in this new material revolution [40] - The article underscores the importance of material science in technological advancements, asserting that breakthroughs in materials are essential for the evolution of high-end manufacturing in China [56]