The price increase of copper clad laminate triggers a chain reaction, and Taiwanese manufacturers accelerate the layout of high-end materials.

The copper clad laminate (CCL) market witnessed a price surge in mid-August. Last week, TATUNG Group announced a price increase of RMB 10 per sheet for its CEM-1, 22F, V0, HB and FR-4 products, which are mid-to-low-end products, prompting other second-tier manufacturers to follow suit. Analysts pointed out that this is the first time in years that the leading manufacturers have initiated a series of price hikes after years of intense price competition among domestic players, indicating that the era of low prices may come to an end. TATUNG has raised its CCL prices again after the first half of 2024 (March/May), and other manufacturers such as Jiangxi Hongruixing and Meizhou Weiliangang have also adjusted their prices. The price increase for some standard TG, medium TG, and high TG products ranges from RMB 5 to RMB 10 per sheet, and the price of prepregs has also increased by RMB 0.5 per meter. This move not only reflects the continuous rise in the prices of raw materials such as copper, resin, and glass cloth, but is also related to the domestic market’s “anti-intrusion” atmosphere, the rising demand for domestic products, and the fact that AI servers are occupying a large amount of production capacity, which is driving the market to reposition prices. Analysts believe that this round of price hikes was initiated by high-end substrates and may gradually spread to mid-to-low-end glass cloth and boards, creating a chain reaction. The supply and demand of upstream materials for PCBs remain tight. Copper foil, which is used in AI server circuit boards, has strong demand; glass cloth is dominated by a few manufacturers such as Nippon Sheet Glass, and its prices continue to rise. Taiwan’s FUKO continues to expand its advanced Low Dk process capacity, and the proportion is expected to increase further by the end of the year. JINJU has raised the processing fees for some copper foils since August to mitigate the pressure of the appreciation of the New Taiwan dollar and electricity prices. The three leading CCL manufacturers in Taiwan are focusing on high-end materials. Among them, TAIYO is concentrating on AI ASIC and 800G switch applications, advancing from M6 to M9 high-speed materials, and will support PCB layers from 22-24 layers to 28 layers, and even up to 34-42 layers by 2028. The gross margin of high-end materials is expected to reach 40-50%. TAIYO continues to increase the proportion of Non-Low-Loss products. Since the mass production of ASIC products in June, M8 high-speed materials have grown the fastest, driving the upgrade of the product mix. LAMPO’s second-quarter revenue and gross margin performance exceeded expectations. In addition to continuously supplying GB200 sub-boards, it will enter the GB300 mainboards and computing trays of a US client in the fourth quarter. Analysts predict that the volume will increase in the first half of 2026, and the gross margin structure will further improve. Analysts believe that overall, the price recovery of mid-to-low-end CCLs, coupled with the demand for AI servers and CoWoP (Chip on Wafer on PCB), the three leading CCL manufacturers in Taiwan are accelerating their layout in high-end materials, which is expected to trigger a new growth cycle.