The core driving force behind this round of market changes is the explosive growth in demand for AI high-end electronic fiberglass. Electronic fiberglass fabric is a core, rigidly required material for the PCBs of AI chips and high-end servers, determining the signal transmission speed and stability of the equipment. The amount of electronic fiberglass used in a single AI server is 3-5 times higher than that in a traditional server. With the global expansion of AI computing power hardware, the shipment volume and output value of global AI servers will see high growth from 2025 to 2026. The demand for high-end electronic fiberglass will double, and global tech giants are scrambling for scarce production capacity, breaking the original supply-demand balance of the industry.
The continuous occupation of high-end electronic fiberglass production capacity has led to a shortage of general industrial-grade fiberglass capacity. The fiberglass industry is a heavy-asset, long-cycle sector. Once a tank furnace production line is ignited, it needs to operate continuously for several years, and cannot be flexibly started/stopped or expanded quickly. The total industry capacity is stable, and resources are tilting toward high-value-added electronic fiberglass, diverting the supply of industrial fiberglass. This keeps the supply and demand of industrial fiberglass in sectors like wind power and general manufacturing in a state of persistent tension. Under the tight supply-demand balance, the prices of fiberglass raw materials keep rising, and the wave of price hikes is spreading comprehensively at an accelerated pace. At present, the price of electronic yarn raw materials is rising, and the inventories of both upstream and downstream parties are at historically low levels. Price hikes are spreading from high-end products to ordinary industrial products, the price increase cycle is shortened, and the upward momentum is strong. Combined with industry trends, this round of AI computing power revolution-driven incremental demand for fiberglass is long-term and sustainable, which is different from the short-term cyclical fluctuations in the past. The prices of fiberglass raw materials will maintain a long-term upward trend in the future.
The fiberglass industry has entered a long-term price hike cycle, and raw material costs will continue to rise. We hereby remind downstream fiberglass enterprises to re-organize and adjust their procurement budgets, lock in prices and stock up in advance, optimize procurement strategies, actively cope with the pressure of rising costs, and avoid operational risks.
