Surging AI Rack Demand Triggers High-End Fiberglass Cloth Shortage and Supply-Chain Shift

As AI chips grow larger and add more layers, advanced printed circuit boards require more T-glass and Low Dk fiberglass cloth. These materials directly affect high-speed transmission and low-loss performance. Tight supplies are driving up prices and drawing market attention to companies including copper-clad laminate leader Elite Material Co.

New capacity from leading manufacturers including Nittobo is not expected to come online gradually until 2027. In the short term, second-tier suppliers in Japan, Taiwan and China are taking spillover orders and accelerating their product transitions. Elite Material is benefiting from tight upstream material supplies and demand for AI racks, prompting a market report to raise its price target to NT$5,100.