The fiberglass industry chain is experiencing a wave of price increases initiated by "fabric" as 2026 begins. On February 12, fiberglass-related stocks showed strong performance, with several concept stocks hitting their daily price limit. On investor interaction platforms, there has been a noticeable increase in inquiries regarding listed companies' involvement in electronic fabric production.
Electronic fabric, also known as electronic-grade glass fiber cloth, is woven from glass fiber yarn of specific specifications. It serves as a core reinforcing and insulating base material for manufacturing copper-clad laminates and printed circuit boards.
Since the start of 2026, the trend of price hikes has continued to spread within the electronic fabric sector. Huatai Securities recently pointed out that on February 4, leading fiberglass companies, including Chongqing Polycomp International Corp., implemented another round of price increases for electronic fabric. This new round of hikes is not only significant in magnitude but also features a shortened cycle between increases. Since 2025, the electronic fabric market has already undergone four rounds of price adjustments.
"Electronic fabric prices have risen for four consecutive cycles since October 2025, with the February increase exceeding expectations. This market trend is not a short-term quarterly rebound but a growth cycle expected to last over two years, driven by AI computing power and high-speed communications," said Ding Zhenyu, a senior investment adviser at Jufeng Investment. The core supporting factors behind this include rigid demand for high-end products, contraction of overseas production capacity, and bottlenecks in weaving machine equipment. The supply-demand balance in the electronic fabric industry is expected to remain tight.
Amid rapidly growing AI demand, the market demand for electronic fabric has increased, leading to a year-on-year rise in product prices. The industry has achieved growth in both production and sales scale, resulting in improved performance for listed companies.
For example, Honghe Electronic Material Technology Co., Ltd. forecasts its net profit attributable to parent company owners for 2025 to be between 193 million yuan and 226 million yuan, representing a year-on-year increase of 745% to 889%. The company attributed this performance growth primarily to the large-scale batch production of high-performance electronic-grade glass fiber yarn by its subsidiary, Huangshi Honghe Electronic Material Technology Co., Ltd., which has achieved independent supply of high-end raw materials. International Composites expects to achieve a net profit attributable to shareholders of between 260 million yuan and 350 million yuan for 2025, turning a profit compared to the previous year's loss. This significant improvement is mainly due to the year-on-year increase in fiberglass product prices.
It is noteworthy that, driven by factors such as AI, the industry's production capacity is structurally shifting towards high-end products. Recently, several A-share listed companies have disclosed new progress in the high-end fiberglass fabric sector.
On February 3, Sinoma Science & Technology Co., Ltd. stated in an interactive platform response that its special fiber fabric products cover the full range, including first-generation low-dielectric fiber fabric, second-generation low-dielectric fiber fabric, low-expansion fiber fabric, and ultra-low loss low-dielectric fiber fabric. All these products have completed certification and are being supplied in bulk to leading domestic and international clients. To further meet the demands of the AI hardware and terminal equipment markets, the company announced three special fiber fabric investment projects in 2025. Once operational, these projects are expected to help rapidly increase the company's special fiber fabric output, enhance its technological advantage in the special fiber field, and consolidate its leading position. China Jushi Co., Ltd., for which electronic fabric is one of its main products, widely applies its fabrics in automotive electronics, consumer-grade electronics, and smartphones. The company recently indicated that the development of low-dielectric and low-thermal-expansion products is progressing in an orderly manner.
Guo Tao, Deputy Director of the China E-Commerce Expert Service Center, commented that high-end electronic fabric will become the core battleground for the next round of industry competition. "On one hand, with explosive demand from fields like AI and high-speed communications, the market space for electronic fabric will continue to expand. On the other hand, this segment has high technical barriers and long customer certification cycles. Once a company enters the core supply chain, it can establish stable cooperative barriers and competitive advantages, making it a key lever for seizing the high-end market and enhancing overall competitiveness."