The construction of AI servers is driving up demand for PCBs, and the domestic supply of low-dielectric, low-expansion fiberglass is steadily increasing.
A recent report by Prismark, a leading electronics industry consulting firm, indicates that artificial intelligence, particularly AI servers and data center construction, has become the strongest growth engine for the global electronics communications and PCB markets. Despite concerns about AI investment bubbles, tariffs, and supply chain risks, AI-driven technological upgrades are bringing significant growth opportunities to the PCB industry, especially in the high-end product sector. The report projects that the global electronics communications market will grow by 8.5% to $2.77 trillion in 2025, while the PCB market is expected to grow by 15.4% to $84.9 billion. Strong growth is expected to continue in 2026. The core driver of the market is the explosive growth in demand for AI servers/storage (projected to grow by 46.3% in 2025), driving demand for high-speed networks, HDI (High-Density Interconnect) boards, high-layer-count PCBs, and advanced packaging substrates.
The report also points out that AI market demand is driving an urgent need for high-end PCB materials, leading to product upgrades and changes in the supply structure of the three key upstream raw materials: copper foil, resin, and fiberglass electronic cloth. The high-layer-count backplanes and packaging substrates required by AI servers necessitate PCBs with more stable dimensions and superior signal transmission performance. Therefore, low-dielectric, low-expansion glass fiber, used to ensure the structural stability of high-layer PCBs at high temperatures and the integrity of high-speed signals, has become a key material.
Professional Analysis:
Initially, low-dielectric, low-expansion glass fiber was mainly developed and produced by companies such as Nittobo (Japan) and AGY (USA), with small quantities supplied to 5G communication facilities and consumer electronics. Domestic companies such as Sichuan Glass Fiber and Chongqing International previously engaged in the research and trial production of this type of special glass fiber, but development was slow due to high technical difficulty, high production costs, and limited market demand. Since the end of 2024, with the rise of AI technology and the rapid growth in demand for AI server construction, the domestic low-dielectric, low-expansion glass fiber industry has experienced rapid development. At the beginning of 2025, globally, low-dielectric glass fiber electronic cloth was still mainly supplied by Nittobo (Japan), with only Taishan Glass Fiber and Henan Guangyuan in China having the capacity to produce millions of meters of low-dielectric glass fiber electronic cloth per month. On March 28, 2025, the electronic materials industrial park project of Henan Guangyuan New Materials Co., Ltd. officially commenced production, and in September, the large-scale low-dielectric electronic cloth production base project of Taishan Fiberglass Co., Ltd. was officially launched. By the end of 2025, several domestic companies, including Taishan Fiberglass, Henan Guangyuan, Chongqing International, and Qingyuan Jiantao, had the capacity for large-scale production of low-dielectric fiberglass yarn and electronic cloth. China's first-generation low-dielectric fiberglass electronic cloth production capacity has surpassed Japan's, accounting for nearly 70% of global capacity. In the area of second-generation low-dielectric and low-expansion fiberglass electronic cloth, domestic companies have also achieved large-scale production and market supply capabilities.
Currently, the demand for high-end PCBs driven by AI is rapidly increasing, coupled with limited supply capacity of high-end air-jet looms and other equipment, the global supply shortage of low-dielectric and low-expansion fiberglass electronic cloth will continue for some time. To alleviate material pressure, PCB manufacturers are actively seeking alternative solutions, such as partially compensating for glass cloth performance through resin formulation optimization or collaborating with material suppliers to develop new composite substrates. Therefore, domestic fiberglass companies still need to accelerate the research and development and large-scale supply of special fiberglass yarns and electronic cloths with low dielectric and low expansion properties, seize the important development opportunities brought about by the upgrading of electronic communication technology, and occupy a more important position in the AI supply chain.