Emerging demand from areas such as AI servers is fueling a new wave of production capacity expansion in the electronic fabric industry. Recently, several listed companies have intensively disclosed plans for electronic fabric project construction and capacity deployment, with high-end electronic fabric becoming a key strategic focus.
For instance, on the evening of May 13, China Jushi Co., Ltd. announced that its wholly-owned subsidiary, Jushi Group Co., Ltd., through its wholly-owned subsidiary Jushi Group Huaian Co., Ltd., plans to construct a production line project for 50,000 tons of electronic yarn and 320 million meters of electronic fabric annually, with a total investment of 4.431 billion yuan.
On the evening of May 8, Jiangsu Jujie Microfiber Technology Group Co., Ltd. (referred to as "Jujie Microfiber") released a private placement plan, aiming to raise no more than 1.1 billion yuan for a high-end electronic fabric construction project. Notably, Jujie Microfiber's main business is ultrafine composite fabric materials, and it only entered the electronic fabric sector through an acquisition in February of this year.
Furthermore, several other companies had previously announced plans to advance capacity expansion. Among them, Sinoma Science & Technology Co., Ltd. had disclosed a private placement plan, intending to raise a total of no more than 4.481 billion yuan to invest in the specialty glass fiber sector, including a project for 35 million meters of low-dielectric fiber fabric annually and a project for 24 million meters of ultra-low loss, low-dielectric fiber fabric annually.
Chongqing Polycomp International Corp. stated during a recent performance briefing that its wind power yarn and electronic fabric products, especially those related to high-frequency and low-dielectric properties, are currently operating at full capacity with ample order backlogs. The company is advancing the construction of a project for 36 million meters of high-frequency, high-speed electronic fiber fabric annually.
Jin'an Guji Group Co., Ltd. also indicated that its copper-clad laminates and electronic glass fiber fabric are currently at full production and sales capacity. The company is constructing an expansion project for 60 million meters of electronic-grade glass fiber fabric annually in Ningguo, Anhui, with trial production expected to commence before the end of 2026.
The core driver behind this wave of expansion stems from AI computing infrastructure construction. A Huayuan Securities research report indicates that with the continuous development of artificial intelligence technology, products like AI servers have significantly increased requirements for PCB layer count, signal speed, and stability, leading to rising demand for high-performance electronic fabrics such as low-dielectric constant electronic fabric.
An expert from the Ministry of Industry and Information Technology's Information and Communication Economy Expert Committee stated that the current demand growth in the electronic fabric industry is primarily driven by AI infrastructure investment boosting PCB demand, which further transmits to the electronic fabric segment, tightening short-term supply and demand dynamics. The demand pull from AI servers for electronic fabric is quite pronounced, and related demand is expected to maintain rapid growth for some time.
In fact, the electronic fabric market has recently shown signs of tightness, with selling prices rising accordingly. According to operating data released by Grace Electron (Fujian) Co., Ltd., the average selling price per meter for its electronic-grade glass fiber fabric was 4.51 yuan, 5.08 yuan, 5.29 yuan, and 6.52 yuan in Q1, Q2, Q3, and Q4 of 2025, respectively. In Q1 2026, the average selling price rose to 9.78 yuan per meter, a year-on-year increase of 116.85%.
Driven by the price increases for electronic fabric, the first-quarter performance of related listed companies continued to surge. For example, Chongqing Polycomp International Corp. achieved a net profit attributable to shareholders of 270 million yuan in Q1 2026, a year-on-year increase of 412.94%. Grace Electron reported a net profit attributable to shareholders of approximately 140 million yuan, a year-on-year increase of 354.22%. Grace Electron explicitly stated that the Q1 performance growth was mainly due to increased sales volume and unit price of ordinary E-glass electronic fabric and increased sales volume of specialty electronic fabric.
"Electronic fabric has evolved from a traditional supporting material into a core foundational material for computing power and communication infrastructure. AI servers, high-frequency high-speed communication, advanced packaging, and new energy vehicles are bringing multiplicative increments. The unit price and gross margin of high-end products are significantly higher than those of ordinary products, lifting the overall industry value," commented an industry expert.
The expert added that from a medium to long-term perspective, the electronic fabric track combines growth attributes with cyclical resilience. It is expected to maintain high prosperity in the coming years, becoming one of the definitive growth themes within the new materials field.
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