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1.Essential Demand from AI Servers and Data Centers

AI servers represent the largest source of incremental demand for low-dielectric glass fiber cloth. AI training and inference processes rely on massive data exchange, necessitating the use of high-layer-count PCBs and high-speed interconnect technologies; this places extreme demands on the dielectric properties and dimensional stability of materials. With the adoption of technologies such as PCIe 6.0 and 224G optical modules, performance requirements for copper-clad laminates (CCL) in AI servers have shifted from standard low-loss to ultra-low-loss (ULL) and hyper-low-loss (HLL) grades, directly driving a surge in demand for the corresponding grades of low-dielectric glass fiber cloth. Market data indicates that the value of CCLs in AI servers is 5 to 8 times that of traditional servers. As a core raw material, high-end low-dielectric glass fiber cloth saw its price reach 320,000–350,000 RMB/ton in 2025—a 20% increase since the beginning of the year—with some specific models experiencing price hikes of as much as 250%–300%.

Regarding the supply-demand gap, driven by continuously rising demand from downstream AI clients and constraints on upstream high-end electronic cloth production capacity, safety stock levels of high-end electronic cloth at major CCL manufacturers have dropped to less than one week’s supply, marking a historical low. To meet the demand for high-end products, CCL manufacturers have been compelled to raise procurement prices. Given current price trends and the supply-demand landscape, high-end glass fiber cloth is poised to see simultaneous increases in both volume and price.

2.Performance Requirements for High-End Chip Packaging

Advanced packaging technology for AI chips represents another key application scenario for low-dielectric glass fiber cloth. As chip manufacturing processes advance to the 3nm node and beyond, packaging densities continue to rise. ABF substrates—critical carriers connecting chips to PCBs—impose extremely stringent requirements on the dielectric properties and purity of their base materials. Typically, the dielectric constant must fall within the 3.0–4.0 range (at 1 MHz), depending on the operating frequency, while the dissipation factor (Df) must be controlled between 0.005 and 0.010 (at 1 MHz); high-frequency applications (such as 5G and high-speed communications) may demand even lower values ​​(<0.005). Furthermore, to meet high-density packaging needs, materials must balance a low Coefficient of Thermal Expansion (CTE) with high heat resistance to prevent circuit breakage caused by thermal stress. Quartz fiber fabric (also known as “Q-fabric” or “third-generation electronic fabric”) has emerged as the preferred material for ABF substrates due to its low dielectric constant (2.2–2.3), minimal dielectric loss (Df of 0.001–0.0005), and ability to withstand long-term operating temperatures of 600°C or higher.

The rapid growth in global AI chip shipments is directly driving an expansion in demand for quartz fabric. According to forecasts by Future Think Tank, the global quartz fabric market is expected to reach $3.127 billion by 2031, with a compound annual growth rate (CAGR) of 23.30%. This projection underscores the upward trend in demand, which hinges on the continued rise of AI chip shipments and the widespread adoption of advanced packaging technologies. Moreover, the development of next-generation AI platforms—such as “Rubin”—aligns with 3nm or N4 chip manufacturing processes and utilizes CoWoS-L ultra-large substrate packaging. These platforms integrate eight HBM4 stacks to meet demands for higher bandwidth and interconnectivity, offering an optimal solution for scaling computing power. The requirements for ultra-large substrates and extreme performance will further expand the demand for quartz fabric raw materials, driving the evolution of Low-Dk (low dielectric constant) glass fabrics toward even lower dielectric constants and lower loss characteristics.

3. Synergistic Growth Effects Across Multiple Sectors

Beyond the core sector of AI computing power, demand from fields such as 5G/6G communications and high-end consumer electronics is driving synergistic growth alongside AI. The evolution from 5G millimeter-wave (24–100 GHz) to 6G terahertz technology (frequency range approx. 100 GHz–3 THz) involves higher frequencies that make communication equipment extremely sensitive to signal loss. While the 5G era required ultra-low-loss fiberglass fabric, the 6G era imposes even stricter requirements for dielectric constant (Dk) and dissipation factor (Df): Dk must drop to 2.0–3.0 (at >100 GHz), and Df must decrease from the 5G standard of 0.003–0.005 (at 10 GHz) to 0.0001–0.0007 (at 100 GHz), creating a need for “extremely low-loss” quartz fabric. In the consumer electronics sector, the iPhone 17 has adopted low-CTE (coefficient of thermal expansion) and low-dielectric fabric supplied by Honghe Technology to address challenges such as soldering the A10 Pro 3nm chip, preventing warping in high-density motherboards, and minimizing energy loss in high-frequency 5G/Wi-Fi 7 signals. This move signals the rapid transition of high-end electronic fabrics from industrial applications to mainstream consumer electronics, driving a surge in material demand and extending delivery lead times. The intelligent upgrade of automotive electronics is also contributing to increased demand; advanced autonomous driving (Level 3 and above) requires numerous ADAS sensors and high-frequency radars. These systems demand signal transmission stability, long-term solder joint reliability, and automotive-grade resilience against vibration, heat, and humidity. Consequently, circuit board materials featuring low dielectric constants, low dielectric loss, CAF (conductive anodic filament) resistance, and low CTE have become the preferred choice for advanced intelligent driving systems, further accelerating the widespread adoption of high-end fiberglass fabric. Industry forecasts suggest that the global market for low-dielectric-constant electronic fabric could reach 3.76 billion yuan by 2031, growing at a compound annual rate of 10.1%—a trend driven primarily by the convergence of demand across multiple sectors.

The ultimate frontier of expanding computing power lies in breaking through the physical limits of materials. From the ultra-low-loss PCBs used in AI servers and quartz fabric in advanced packaging to high-end laminates for consumer electronics and autonomous driving, low-dielectric fiberglass fabric is entering an unprecedented “moment in the spotlight.” Amid a supply-demand landscape characterized by rising volumes, increasing prices, and capacity shortages, this seemingly lightweight “electronic fabric” has undoubtedly emerged as one of the most explosive growth sectors bridging AI hardware infrastructure and next-generation high-frequency communication technologies.