Core Insights - The demand for AI specialty fabrics is expected to accelerate by 2026, with the supply-demand gap for Low DK 2nd generation and Low CTE likely to expand to around 20% [1] - The release of proactive inventory replenishment demand is anticipated to amplify the price elasticity of specialty fabrics [1] - Specialty fabrics account for only 0.1% of server costs, indicating that downstream sectors are less sensitive to price increases [1] - It is projected that the prices of Low DK 2nd generation and Low CTE could potentially double or more by 2026 [1]

Core Insights - The report from CITIC Securities indicates that the demand for AI specialty fabrics is expected to accelerate by 2026, with the supply-demand gap for Low DK 2nd generation and Low CTE likely to expand to around 20% [1] - The report anticipates that the price elasticity of specialty fabrics will increase due to the release of proactive inventory replenishment demand [1] - Specialty fabrics account for only 0.1% of server costs, suggesting that downstream sectors are relatively insensitive to price increases in specialty fabrics, with expectations for prices of Low DK 2nd generation and Low CTE to potentially double or more by 2026 [1]