2025-09-07 16:19Summary of Conference Call Records Industry Overview - The conference call discusses the AI electronic fabric and fiberglass industry, highlighting significant trends and projections for the coming years. Key Points on AI Electronic Fabric - High-performance interconnect board demand is surging, with 2026 expected to be the year of mass application for Ma Jiu interconnect boards, primarily used in devices like Nvidia's B cards and Amazon's chips [1][3] - Q fabric is not the only material choice, but its application is being accelerated due to strategic decisions by downstream companies, particularly in the orthogonal backplane sector, with an estimated demand of 2 million meters by 2026 [1][3] - The switching field is driving the application of Ma Jiu materials and Q fabric, with projected demand of 3 million meters in 2026, increasing to 10 million meters in 2027 [1][3] - The supply gap for second-generation fabric is expected to widen, leading to price increases and enhancing the advantages of repair fabric applications. Demand for LDK electronic fabric is projected to reach 200-300 million meters by 2027-2028, with Low CTE electronic fabric demand at 30-40 million meters, resulting in a combined market size of approximately 30 billion RMB [1][4] Key Points on Fiberglass Industry - The fiberglass industry is experiencing a response to internal competition, with small enterprises uniting to propose price increases to improve profitability. The sustainability of these price hikes will depend on market acceptance and competitor reactions [5][26] - Low CTE electronic fabric demand has exceeded expectations, driven by increased orders from servers, Apple's M5 chip packaging, and TSMC's push for COS processes in automotive chips [6][7] - The global mobile phone market is expected to see significant growth in LCT demand, with projections for 20 million meters in 2026 and over 30 million meters in 2027, primarily due to increased sales from major manufacturers like Apple and Huawei [2][8] Additional Insights - Nitto Denko is investing 300 million JPY in capacity expansion, which will increase its annual capacity to 10 million meters by 2027, indicating strong market demand for LCT [9] - China National Materials Technology is optimistic about LCD supply in 2026, expecting a monthly supply of 600,000-700,000 meters and an overall industry supply gap of around 30% [10][11] - The competitive landscape in the electronic fabric industry is characterized by established players like China National Materials and Fiberglass, which have differentiated themselves in performance, cost, and yield [14] - China Jushi is making significant strides in the electronic fabric sector, with plans to achieve a 15% net profit margin, potentially increasing its market value by 20 billion RMB [13] - The supply-side reform has led to increased competition in the fiberglass industry, with new entrants facing challenges due to price declines and stricter project approvals [25][26] Conclusion - The conference call highlights a robust outlook for both the AI electronic fabric and fiberglass industries, driven by technological advancements and increasing demand from key sectors. The dynamics of supply and demand, along with strategic actions from industry players, will shape the market landscape in the coming years.