Summary of Conference Call on Electronic Fabric Industry Industry Overview - The conference discusses the electronic fabric industry, specifically focusing on quartz fiberglass fabric and its applications in high-end AI chip packaging and the impact of COP (Chip-on-Panel) technology on upstream materials [1][2][4]. Key Points and Arguments 1. **Increased Demand for Low CTE Materials**: High-end AI chip packaging is driving a surge in demand for low CTE (Coefficient of Thermal Expansion) materials, with quartz fiberglass fabric being critical due to its near-zero expansion coefficient [1]. 2. **Impact of COP Technology**: If COP technology matures, it will reduce the need for ADF (Adhesive Dielectric Film) substrates, necessitating an increase in the number of PCB (Printed Circuit Board) layers from 20-30 to 30-50 layers, which will significantly increase the usage of quartz fiberglass fabric by 10%-50% [2][14]. 3. **Purity of Quartz Fiberglass**: The purity of quartz directly affects the CP (Coefficient of Performance) value, with high-end AI chips preferring quartz sand with a purity of 4N or above. Domestic manufacturers are working to catch up, with expectations to meet these requirements by late 2025 or early 2026 [1][6]. 4. **Production Barriers**: The core barriers in electronic fabric production lie in the drawing process and raw materials. The technology for synthetic quartz sand is currently monopolized by Japan, but domestic companies like Feilihua are developing their capabilities [9][10]. 5. **Growth in LDP Demand**: The demand for LDP (Low-Density Polyethylene) is expected to peak in 2026, potentially reaching 3-5 million meters per month, driven by advancements in chip capabilities [11][12]. 6. **Future of Quartz Fiberglass Fabric**: The number of layers in quartz fiberglass fabric is expected to increase by 10%-20% as chip capabilities improve, and the value of PCB and fiberglass fabric could increase by 50% with the adoption of orthogonal backplane technology [13][14]. 7. **Material Cost and Pricing Trends**: The price of quartz fiberglass fabric is currently high due to supply-demand imbalances, but it is expected to stabilize around 200 RMB per unit in 3-5 years as production capacity expands [40][41]. Additional Important Insights - **Technological Development**: There is a need for the development of new electronic fabrics that can meet the performance and CTE requirements of COP technology, which will enhance overall performance and ensure compliance with packaging standards [5]. - **Market Dynamics**: The introduction of the Rubin series is anticipated to begin volume production by mid-2026, which will depend on sales performance and the overall market demand for quartz fiberglass fabric [31][33]. - **Competitive Landscape**: Domestic manufacturers are making strides in the electronic fabric sector, with varying strengths in different technical aspects such as raw material production and post-processing techniques [7][23]. This summary encapsulates the critical discussions and insights from the conference call regarding the electronic fabric industry, particularly focusing on the implications of technological advancements and market dynamics.