Core Viewpoint - The high-performance electronic fabric market is experiencing a supply-demand imbalance due to strong demand from AI servers and high-frequency communication sectors, leading to price increases for related products [1][2]. Supply and Demand - Strong demand for AI is causing a short-term mismatch between the production capacity of high-performance electronic fabrics and market needs [2]. - The core raw material for high-performance electronic fabrics is high-performance glass fiber yarn, which has high technical barriers to production, with only a few manufacturers in Japan, the United States, and Taiwan capable of mass production [2]. Price Increase - The tightening of production capacity is driving expectations for price increases in electronic yarn products. For instance, Nittobo, a global leader in electronic yarn, announced a 20% price increase for its glass fiber products starting August 1 [3]. - According to Honghe Technology, the average selling price of electronic-grade glass fiber fabric is projected to reach 4.81 yuan per square meter in the 2025 mid-year report, reflecting a year-on-year increase of 1.15 yuan per meter, with prices rising for four consecutive quarters [3]. Company Developments - China National Glass Fiber is actively advancing the development of low-dielectric and low-expansion products, with downstream certifications progressing rapidly. The ongoing demand from AI is expected to further expand the high-performance electronic fabric market [4]. Market Outlook - The storage market is showing signs of recovery, with South Korea's storage chip export value increasing by 20.7% year-on-year in Q2 2025, and average prices rising by 0.7% year-on-year. The average price of storage chips has rebounded to 2022 levels, indicating a potential new cycle in the storage market [5]. Investment Recommendations - The electronic industry maintains a "buy" rating, with a focus on upstream materials in the AIPCB sector. Companies to watch include Honghe Technology, Tongguan Copper Foil, Defu Technology, Dongcai Technology, Shengquan Group, Tiancheng Technology, Lianrui New Materials, and Jiangnan New Materials [6].