Summary of Conference Call on Electronic Fabric Industry Industry Overview - The conference call focused on the electronic fabric industry, specifically discussing advancements in PCB (Printed Circuit Board) technologies and materials used in various architectures such as GP300, GB200, and Rubin series [2][4][6]. Key Points and Arguments 1. **Material Upgrades and Usage**: - GP300 architecture has reverted to PCB solutions, increasing PCB usage and material grades. The Rubin series is testing PTFE1 and Ma9 grade materials, with NV actively evaluating Ma9 materials [2][4]. - GP300 employs HDI design with approximately 20+ layers, while GB200's actual layer count increased from 30 to nearly 40 layers, significantly enhancing CCL (Copper Clad Laminate) and BS (Binding System) material usage and value [2][6]. 2. **Price Changes**: - In GB200, the computer section is priced around $500-$600, while the switch section exceeds $1,000. In GP300, the switch section's value increased by 30%, from $1,000 to $1,500 [7][8]. - The Rubin series is expected to see a price coefficient increase of 2-2.5 times, with each board potentially exceeding $4,000 [7][8]. 3. **Supply Chain Dynamics**: - There is a significant disparity in yield rates among glass fabric manufacturers, with major suppliers including Asahi Glass (Japan), Taiwan Glass, and Taishan Fiberglass (China) [10][11]. - Ordinary fiberglass is priced around 10 RMB, while first-generation Low DK is priced at 30-40 RMB, and quartz (Q) prices are at least double that of the second generation [14]. 4. **Testing and Evaluation**: - The M9 and QQ material testing is being conducted in three tiers, with NV having completed initial evaluations and AWS, Google, and Meta expected to finish testing by Q3 2025 [3][16]. - The performance of quartz fabric varies significantly between manufacturers and even between batches from the same manufacturer, indicating instability in quality [17]. 5. **Market Demand and Supply Challenges**: - The demand for electronic fabrics is expected to increase, with potential supply bottlenecks anticipated in the mid-range output due to tight supply of first-generation Low DK glass fabric [29][30]. - The expansion cycle for electronic fabric production typically takes 1 to 1.5 years, with quartz fabric potentially requiring an additional 20-30% more time [28]. 6. **Future Trends**: - The initial pricing of new electronic fabrics is typically around 2.5 times that of the previous generation, decreasing to below 2 times during mass production, with a target stabilization at 1.5 times [31]. - The market for second-generation fabrics is expected to remain tight, with prices likely to hold steady due to high demand and limited supply [35]. Additional Important Insights - The current focus on testing indicators emphasizes DK and DF values, with stability in performance being a primary concern [27]. - The entry of new suppliers into the electronic fabric market is cautious, with established relationships and technical capabilities being prioritized [20]. - The market share for first-generation electronic paper suppliers shows that the top three suppliers account for approximately 60% of the total procurement volume [32][33]. This summary encapsulates the critical discussions and insights from the conference call, highlighting the evolving landscape of the electronic fabric industry and its implications for future investments and market dynamics.

Summary of Conference Call Records Industry Overview - The PCB sector is experiencing an overall upward trend, primarily driven by overseas ASIC manufacturers increasing their shipment volumes for the next year, particularly Meta and Google, which significantly boosts demand for PCB products [2][4][6]. Key Points PCB Sector Insights - PCB demand is expected to increase by 17 to 18 billion RMB next year, which will positively impact the upstream raw material supply [2][6]. - Short-term order tracking indicates sustained growth in the PCB sector, although domestic PCB and CACCO companies are increasing their participation in the supply chain, leading to intensified competition in the high-end materials market [2][7]. - The next-generation product technology route for Rubicon remains uncertain, but the inclusion of q cloth specifications in high-grade materials is likely, with applications expected in high-bandwidth circuits [2][8]. Product Development and Market Trends - The GB300 product is anticipated to be released by the end of Q3 2025, corresponding to the Ma Ba materials, while Rubicon is expected to launch in mid-2026, linked to Ma Jiu materials [2][12]. - The global computing terminal manufacturers are expected to predominantly adopt ROKIT second-generation products next year, although currently, only two products utilize ODK second-generation technology [2][9][10]. Special Glass Fiber Cloth Market - The special glass fiber cloth market has seen multiple catalysts this year, with a shift in focus from DKS first-generation products to low expansion coefficient cloths and now to BLOCK third-generation products [3]. - The market currently has limited shipment volumes, but if monthly shipments reach 100,000 meters, significant profits could be realized, with projections for 2026 indicating profits could rise from 700 million to nearly 1 billion RMB [5][17][22][23]. Competitive Landscape - Leading companies like Taibo have shown strong performance in the special glass fiber cloth supply, leveraging advanced technologies and partnerships to maintain a competitive edge [15][24]. - The supply situation in the special glass fiber industry is not as robust as expected, with actual supply growth remaining slow, primarily concentrated among top domestic companies [21]. Future Projections - For 2026, the special glass fiber market is projected to see significant profit changes, with potential revenues from 700 million to 850 million RMB, and in optimistic scenarios, profits could reach around 1 billion RMB [22][23]. - Middle Material Technology and its subsidiary Taibo are expected to achieve revenues of 1.6 billion RMB in 2025, with the special glass fiber segment contributing 700 to 800 million RMB [24]. Additional Insights - The transition from first-generation to second or third-generation products in the special glass fiber sector is complex, facing challenges related to customer access and technological compatibility [18][19]. - The temperature control in the production of second and third-generation glass fibers presents significant challenges, impacting production stability and quality [14][20]. This summary encapsulates the key insights and projections from the conference call, highlighting the dynamics within the PCB and special glass fiber cloth industries.