Summary of CCL Expert Conference Call (December 27, 2025) Industry Overview - The conference focused on the **CCL (Copper Clad Laminate)** industry, particularly the supply and pricing trends of key materials such as **copper foil**, **resin**, and **glass fabric** [2][3]. Key Points and Arguments Supply and Pricing Trends - **High-end AI applications** are causing a tight supply of copper foil, leading to a continuous increase in the copper foil price index due to limited suppliers and the slow ramp-up of resin production capacity [2][3]. - **Electronic fabric prices** have generally risen, with LDK generation one experiencing a significant increase, expected to continue rising by approximately **20% in 2026** [2][4]. - The domestic price of Q fabric has reached **300 RMB**, while international prices exceed **400 RMB**. Domestic manufacturers are nearing the performance levels of overseas products [2][8][9]. - The **fourth generation copper foil** is anticipated to begin large-scale shipments in the second half of **2026**, primarily from overseas suppliers, significantly impacting the high-end copper foil market [2][21][23]. Material Usage and Demand - In PCB boards, the usage ratios of different thicknesses of copper foil are **30%-40% for 35 microns**, **30%-40% for 18 microns**, and **20% for 9 microns**, influenced by PCB design and signal transmission requirements [2][24]. - The demand for Q fabric is projected to reach **4.5 million meters per month** in 2026, with a total expected range of **10 million to 20 million meters** depending on Nvidia's CPS version shipment volumes [2][6][8]. Supply Chain and Production Capacity - Current effective supply is about **4 million meters per month**, with gradual increases expected as qualified suppliers expand capacity in **Q2 or Q3 of next year** [2][7]. - Several suppliers are significantly expanding production, with companies like **Beili Huang** and **International Composite Materials** expected to add over **10 million square meters** of capacity in 2026 [2][13]. Pricing Mechanisms and Strategies - The pricing mechanism for copper foil consists of copper paper prices and processing fees, with adjustments made based on market conditions rather than fixed schedules [2][20]. - PCB manufacturers face challenges in passing on cost increases to downstream customers, with strategies varying based on competitive dynamics. PCR suppliers find it difficult to lower prices, while TP manufacturers may face greater challenges due to intense competition [2][28]. Future Expectations - The prices of **electrolytic resins and glass fabric** are expected to continue rising in **2026**, with domestic resin production ramping up but glass fabric facing significant price pressures due to supply-demand imbalances [2][26][27]. - The overall market for high-end CCL products is expected to see increased demand and potential price adjustments, although maintaining strategic customer relationships may limit price increases for high-end products [2][28]. Additional Important Insights - The verification process for CCL products from customer testing to terminal validation typically takes **1 to 2 years** [2][11]. - The fastest progress in this verification process is currently being made by **Feilihua** [2][12]. - The overall PCB yield rate is currently around **50%**, with expectations to improve to **70%** in the future, depending on substrate and processing optimizations [2][16]. This summary encapsulates the critical insights from the CCL expert conference call, highlighting the current state and future expectations of the industry.