Let's talk about copper-clad laminates. This item may seem insignificant, but it is currently caught at the intersection of two cycles—AI explosion and rising copper prices.

First, let's look at AI. According to estimates, the market growth for AI PCB and copper-clad laminates can reach 188%, and this growth curve is indeed steep. More interestingly, material grades are continuously iterating and upgrading. Next year, some high-end AI applications will start using M9 grade copper-clad laminates, which represents a major change in industry structure. Globally, fewer than five companies are certified with M9 materials, and among them, only about three are certified through overseas Q systems. What does this mean? Scarcity.

Next is the strengthening of the copper cycle. The PPI inflation logic is solid; demand for electronic basic materials is likely to increase next year—not only for AI but also for automotive, energy storage, and other fields. But what about supply? The slope of copper price increases is rising, putting pressure on copper-clad laminate companies—they need to bear cost pressures and find ways to pass them on. Moreover, once copper prices go up, supply will dynamically contract, directly intensifying supply and demand tensions.

There is also a more interesting phenomenon: AI is squeezing out traditional capacity. Producing 1 unit of high-end CCL requires replacing 4 to 5 units of ordinary capacity. As a result, low- and mid-end copper-clad laminates are becoming increasingly scarce, and structural supply pressures are emerging.

Therefore, starting from Q1 2026, the price increase of copper-clad laminates is expected to accelerate, with sustainability possibly lasting from half a year to a year.

Here are some companies in the industry chain worth paying attention to. Jiantao PCB, as a global leader, has bargaining power and scale advantages, and this round of price increases will lead to profit elasticity. Coupled with the expected volume growth of high-end high-frequency products, its potential is significant. Shengyi Technology maintains its position as a domestic high-end board leader; traditional CCL products are expected to rise along with the market, and AI M7 and M8 have already been shipped in bulk. Under the overall tight supply and demand environment, it has the opportunity to accelerate market share expansion, and M9 is progressing well in the downstream verification stage. Nanya New Materials, as a domestic leader, is capable and positioned in the quasi-first tier; this price increase cycle is an opportunity—product structure upgrades, profit recovery, and overseas customer development are all progressing simultaneously. AI CCL volume is further increasing, and there is considerable room for performance growth.