Sytech(SH:600183)2025-07-11 01:13Summary of Conference Call on Specialty Electronic Fabrics Industry Overview - The second-generation glass fabric market share is expected to reach 50% by the end of 2026 or early 2027, while the first-generation fabric and E-glass applications will gradually decrease, with the first-generation fabric currently holding 70%-80% market share [1][3][19] - The demand for second-generation glass fabric is currently outpacing supply, with Japanese and Taiwanese manufacturers planning to expand production, expected to complete within 6-9 months [2][28] Key Insights and Arguments - Material Transition: The transition from first-generation to second-generation materials is underway, with the latter currently undergoing engineering validation and the third generation in testing [1][4] - Price Dynamics: The price of second-generation glass fabric has increased by at least 30% compared to the first generation, contrary to rumors of a threefold increase. The first-generation fabric has transparent and widely available pricing, while the second generation is subject to price hikes due to supply shortages [1][8] - Market Demand Projections: By 2026, the second-generation fabric's market share is projected to increase to 50%, with an expected shipment volume of over 4 million meters, contingent on the gradual phase-out of first-generation projects [1][18] - High-Frequency Projects: The high-frequency projects of the company are expected to begin mass production in the first half of 2025, marking a significant milestone for both AI and traditional switch routes [1][24] Additional Important Information - Supply Chain Dynamics: The primary suppliers for first and second-generation materials are Taiwanese manufacturers, while Japanese suppliers are primarily responsible for third-generation materials. Domestic suppliers are still in testing phases [4][9][17] - Market Competition: There are performance and pricing differences among domestic and international suppliers, with Japanese suppliers like Asahi and Shin-Etsu showing stable performance, while domestic products are still under evaluation [5] - Future Market Space: The overall market space for second-generation materials is expected to double by the end of 2026, provided there are no significant market disruptions. However, if cost-reduction measures are effective, the growth may be moderated [7][20] - Testing and Validation: The quartz fabric is not yet in mass production due to ongoing performance testing, with suppliers in Shandong and Hubei involved in validation processes [3][17][25] This summary encapsulates the key points discussed in the conference call regarding the specialty electronic fabrics industry, focusing on market dynamics, supply chain, pricing, and future projections.