The rapid price increases in CCL throughout 2026 are the result of a convergence between explosive demand from AI computing and rigid supply shortages of upstream core raw materials. This has broken the traditional cost-pass-through logic and entered a "seller's market" pricing phase. As of June 2026, leading domestic manufacturers have implemented five cumulative price hikes within the year, with total increases exceeding 50%, and some specifications hitting historical highs above RMB 300 per sheet.
Core Drivers
Demand Side: Structural Incremental Growth Driven by the AI Supercycle
Surge in Consumption: AI servers require 3 to 5 times more CCL than traditional equipment. Furthermore, with the iteration from NVIDIA's GB200 to the subsequent Rubin architecture, the number of PCB layers per unit has increased to 26 layers or more, significantly boosting overall value.
Mandatory Upgrades Due to Technological Advancements: 224G high-speed interconnectivity demands a material grade upgrade from M7 to M8/M9. The stringent requirements for low dielectric constant (Dk/Df) mean that high-end capacity cannot be substituted by conventional production, thereby creating an independent and isolated demand pool.
Concurrent Growth Across All Segments: Beyond AI servers, the ramp-up of 800G/1.6T switches and the surge in ASIC chips are collectively driving demand for high-frequency, high-speed CCL, with orders already booked through 2027.
Supply Side: "Hard Gaps" Emerging in Key Upstream Raw Materials
Severe Constraints on Electronic Glass Fabric: The price of mainstream products like 7628 electronic glass fabric has doubled since the beginning of the year. The core bottleneck lies in the Toyota loom, which has a global monthly production capacity of only 100 units and a delivery lead time exceeding one year. This restricts the expansion of glass fabric production capacity, and has even led to plant shutdowns due to material shortages.
Shortage of High-End Copper Foil: Only 2-3 domestic manufacturers have the capability to mass-produce HVLP (very low profile) copper foil, with capacity expansion queues stretching to 2027, creating a supply-demand gap of approximately 28%-38%, directly constraining high-end CCL output.
Resin and Filler Shortages: Core suppliers of high-end resins such as PPO and hydrocarbon are currently in the expansion validation phase with supply yet to be released, further capping the upper limit of overall supply.
Market Dynamics: Low Inventory Levels and a Positive Feedback Loop on Price Hikes
Zero-Inventory Operation: Inventory levels across the entire supply chain have fallen to historical lows (with CCL manufacturers holding only about half a month's worth of stock). Downstream PCB manufacturers, in order to secure delivery, are forced to accept price increases and accelerate stockpiling, creating a positive feedback loop where "the more prices rise, the more they buy."
Pricing Power Shifts Upstream: Due to strong monopolistic control over raw materials and capacity constraints, CCL manufacturers hold absolute pricing power. Price increases are no longer solely about covering costs but now include a scarcity premium, substantially expanding gross profit margins.
Trend Outlook
This round of price increases is not a cyclical fluctuation but a structural long-term cycle defined by AI technological iteration. Constrained by upstream equipment delivery times (e.g., looms, plating equipment) and certification cycles, the tight supply-demand dynamic is expected to persist until the second half of 2027, when new capacity is projected to come online.
