After the holiday, many friends are concerned about the next investment direction.
After communicating with people in the industry chain, the next most promising new main line is the upstream materials company in the PCB+semiconductor dual track.
Let’s look at an example first. Last month, NVIDIA’s Jen-Hsun Huang personally flew to Japan and met with the presidents of two fiberglass cloth factories to increase production capacity and secure orders.
It is rare for one of the world’s top chip giants to go to a material factory at the top of the industrial chain to stock up.
Industry data in May 2026 shows that the single-month revenue of Taiwan’s leading copper-clad laminate companies has doubled year-on-year, and the delivery schedule of high-end HVLP copper foil has reached 20 weeks, 12 weeks longer than the same period last year; the high-end production capacity utilization rate of the leading domestic PCB manufacturers has exceeded 93% year-round, and orders are scheduled until the end of the year.
The demand for AI computing power and advanced packaging has exploded, but high-end materials are stuck, global production capacity is difficult to expand, and the gap between supply and demand is obvious.
The following is an in-depth analysis of why there is a PCB+semiconductor dual track.
Many people have misunderstandings about PCB and semiconductor materials. In fact, these two tracks have reached a critical point of resonance in 2026, and the core explosion point is in upstream materials.
In terms of market size, the global PCB market will reach US$85.2 billion in 2025, with a year-on-year growth rate of 15.8%. It is expected to reach US$95.8 billion in 2026, and will exceed US$100 billion in 2027 at the earliest.
China’s market accounts for more than 53%, and domestic output value is expected to exceed 520 billion yuan in 2026.
However, the market is divided in a K-shaped manner. Low-end multilayer boards for general consumer electronics are growing at a rate of 5%-8%, resulting in overcapacity and price involution. High-end multilayer boards, IC packaging substrates, and high-frequency high-speed boards for AI servers are growing at a rate of more than 30%-50%. The value of a single machine is 5-8 times that of a traditional PCB, and the supply-demand gap exceeds 20%.
In terms of semiconductor materials, the global market size will exceed US$84 billion in 2026, with an annual growth rate of over 10%; mainland China’s market size will reach US$35.3 billion, accounting for more than 40% of the global share, and 77% of the world’s new wafer production capacity comes from China.
However, the overall localization rate of my country’s semiconductor materials is less than 25%, and the high-end category is less than 10%.
2026 is a key turning point for domestic substitution. Many materials have moved from laboratory research and development to mass supply. The verification cycle of leading wafer fabs has been shortened, and the introduction of domestic materials has exceeded expectations.
There are three core reasons for emphasizing “dual track” material companies: First, the technology is highly reusable. For example, high-end copper foil is not only the core raw material of high-end PCB, but also an essential consumable for semiconductor packaging and wafer manufacturing. After the company masters the high-end PCB technology, it can enter the semiconductor industry.
The track has high R&D efficiency; the second is strong anti-cyclical ability, the PCB and semiconductor business cycles are not synchronized, and the performance of the dual-track layout is more stable; the third is the high degree of customer overlap, and the company can supply PCB and semiconductor materials at the same time by winning the top customer, and the customer stickiness and revenue elasticity are high.
What is the shortage of materials for the core neck of the dual track?
Below we break down 5 types of scarce materials for you.
1. High-end copper clad laminate (CCL): It is the core substrate of dual tracks.
The global copper-clad laminate market is expected to reach US$35 billion in 2026, with China accounting for 74% and high-end high-speed copper-clad laminates accounting for about 25%. The unit price is 3-6 times that of ordinary FR-4 products.
The global effective production capacity of M8 and M9-level ultra-low-loss copper-clad laminates for AI servers can only meet 80% of demand, leaving a gap of more than 20%. There are very few domestic companies in China that can supply M9-level substrates in batches.
High-end substrates for semiconductor-side FC-BGA packaging substrates were monopolized by Japanese and American companies in the past. Domestic manufacturers have just made breakthroughs, and there is huge room for substitution.
2. HVLP ultra-low profile copper foil: It is the core metal material of the card neck.
The surface roughness of HVLP copper foil is low, which can reduce high-speed signal transmission loss and meet the ultra-thin requirements of packaging carrier boards. Ultra-thin copper foil below 12 μm used to be supplied by Japanese companies.
Global demand for high-end HVLP copper foil is expected to grow by 40% in 2026. Overseas manufacturers are conservative in expanding production, domestic production capacity is climbing, the overall gap exceeds 30%, and prices have risen by more than 35% cumulatively.
3. Low dielectric electronic fiberglass cloth: It is a neglected “skeleton material”.
In 2026, global demand for high-end low-dielectric fiberglass cloth is expected to be 18.5 million meters, with effective production capacity of only 10 million meters, a gap of more than 50%.
Japan’s Nittobo monopolizes 90% of the world’s high-end production capacity, and domestic companies have just begun small-scale mass production.
Since March this year, the price of overseas fiberglass cloth has been raised twice, with a cumulative increase of more than 30%. Downstream manufacturers are rushing to buy goods and pay the full price in advance, with a waiting period of half a year.
4. Special electronic resin: It is the “core adhesive material” that blocks the neck.
Resin accounts for about 40% of the cost of copper clad laminates and determines the dielectric properties of the base material.
PPE resin and special epoxy resin for high-end PCB and semiconductor packaging used to be monopolized by overseas companies.
In March this year, high-end resin factories in the Middle East stopped production, reducing global supply by nearly 30%. The price of high-end PPE resin increased fourfold, accelerating domestic substitution.
Special epoxy resin is also the core raw material for semiconductor packaging plastics and underfills. Domestic companies can enter two hundreds of billions of markets after breakthroughs.
5. Functional wet electronic chemicals: they are the hidden champions of technological interoperability.
Such materials include electroplating solutions, etc., which are used in PCB manufacturing, semiconductor wafer manufacturing, and packaging processes. The core technical principles are the same.
The localization rate of high-end wet electronic chemicals on the PCB side is about 30%, and the localization rate of high-end electroplating solutions on the semiconductor side is less than 15%. There is huge room for substitution.
A company that originally made PCB wet chemicals entered the semiconductor track, and customer certification is fast.
The following is a summary of 8 materials companies that have both PCB and semiconductor tracks.
1. Dual-platform leader in copper clad laminates + packaging substrates: The leader in the domestic copper clad laminate industry, second in global shipments, and the only company capable of producing M9-level high-end high-speed copper clad laminates.
On the PCB side, the M8 and M9 series of high-end base materials are supplied to leading domestic computing power PCB manufacturers, supporting NVIDIA’s new generation AI server backplane. High-end production capacity is expected to increase by 40% in 2026, and orders are scheduled until the end of the year.
On the semiconductor side, we have self-developed special epoxy resins, etc. The products have entered many FC-BGA packaging plants and are suitable for GPU and HBM memory chip packaging substrates, breaking the overseas monopoly. The revenue growth rate of the semiconductor materials sector has exceeded 60% for three consecutive quarters.
The core advantages are coverage of all categories of substrates, overlapping downstream customers, scale and cost advantages in raw material procurement, business lines that can hedge against cyclical fluctuations, and stable performance.
2. Leader in dual tracks of high-end copper foil: domestic HVLP core manufacturer of high-end electronic copper foil, deploying PCB high-speed copper foil and semiconductor ultra-thin copper foil.
The production capacity of 55,000 tons of HVLP series high-end copper foil on the PCB side is ramping up, specifically for high-speed backplanes for AI servers. Demand will double in the second quarter of 2026, with product performance benchmarking against Japan, and prices 15% – 20% lower.
The semiconductor side has made breakthroughs in wafer-level ultra-thin copper foil and other technologies. The products have been certified by domestic leading packaging and testing factories and are supplied in batches for advanced packaging.
The core advantages are large production capacity, rapid technological iteration of high-end products, advantages in industrial chain integration, and strong cost control capabilities.
3. New high-speed base material + carrier board material: a leading domestic high-end high-speed copper-clad laminate company, ranking first in the world, focusing on the mid-to-high-end market.
On the PCB side, there are twelve high-end copper-clad laminate mass production lines, with an annual production capacity of over 60 million square meters. They cover a full range of high-speed materials from M2 to M10. The products are adapted to AI servers, etc., and supply to downstream leading manufacturers.
The semiconductor side lays out special substrates such as HBM memory chips. The research and development materials have been verified by the packaging and testing factory and are supplied in small batches. It is one of the few manufacturers that can provide carrier board-level substrates.
The core advantage is its focus on high-end tracks, a complete product matrix, a high proportion of R&D investment, and profound technology accumulation.
4. High-frequency materials + packaging supporting small giant: a core manufacturer of high-frequency copper-clad laminates in China, laying out semiconductor packaging supporting materials.
The PCB side focuses on high-frequency and high-speed copper-clad laminates. Its products are used in 5G communications and other fields. Its market share in high-frequency substrates ranks among the top among domestic enterprises.
On the semiconductor side, supporting materials for ABF packaging substrates have been laid out, and the products have entered the supply chain verification stage, with large room for future growth.
The core advantage is differentiated competition, the establishment of technical barriers in the segmented high-frequency field, and the flexibility of the semiconductor business.
5. Breakthrough in the dual track of wet electronic chemicals: Originally the leader in high-end PCB wet electronic chemicals in China, it expanded into the field of semiconductor materials.
The PCB side builds a complete product system around core processes, has a high market share in high-end HDI and other fields, and serves domestic leading PCB manufacturers.
On the semiconductor side, we have completed the development of key electroplating systems and passed the verification of core indicators. We have established a semiconductor business unit to tackle advanced packaging materials. A number of products have been mass-produced at packaging and testing customers.
The core advantage is its profound accumulation of PCB technology, high reusability of semiconductor business technology, and smooth customer expansion.
6. All-round player in electronic special gas + PCB materials: Rising through overseas mergers and acquisitions, it is one of the domestic companies with a comprehensive layout of semiconductor materials, covering core PCB consumables.
The semiconductor side is the only company in China that has achieved domestic substitution of semiconductor precursor materials, with a global share of about 15%. It has deployed products such as electronic special gases and entered the global mainstream wafer factory supply chain.
The PCB side lays out core materials such as flame retardants, and is a core supplier of high-end PCB flame retardants, with business revenue growing steadily.
The core advantage is that the technical barriers to semiconductor materials are high, the PCB business provides stable cash flow, the synergy between the two tracks is obvious, and the company has strong anti-cyclical capabilities.
7. The leader in the dual layout of photoresist + electronic resin: A leading domestic semiconductor photoresist company, deeply engaged in electronic grade resin materials, and the two tracks develop collaboratively.
The domestic market share of KrF photoresist on the semiconductor side exceeds 40%. The research and development of ArF photoresist is smooth, and the company has deployed photoresist supporting reagents and other products. It is one of the companies with a complete photoresist industry chain layout.
PCB-side electronic-grade phenolic resin and other businesses are core raw material suppliers for high-end PCB copper-clad laminates. It is tied to domestic leading copper-clad laminate manufacturers to provide a stable performance base.
The core advantage is that the resin business is the upstream raw material for photoresist, and the industrial chain integration advantage is obvious. The PCB and semiconductor businesses collaborate on the raw material side, and the technology and cost advantages are outstanding.
8. Electronic fiberglass cloth dual-track scarce target: domestic core manufacturer of high-end electronic fiberglass cloth, breaking through the monopoly of Japanese companies.
The PCB side mass-produces low-dielectric electronic glass fiber cloth, etc., supplies high-end high-speed copper-clad laminate manufacturers, adapts to the PCB demand of AI servers, and the production capacity of high-end products is ramped up.
On the semiconductor side, low thermal expansion coefficient glass fiber cloth is developed for use in semiconductor packaging substrates. It has been verified by downstream carrier board manufacturers and is supplied in small batches.
The core advantage is that there are few players in the high-end fiberglass cloth track, high technical barriers, obvious first-mover advantages for enterprises, and high performance flexibility.
Although this track has good prospects, it also has risks.
The first is the risk of technology iteration, the AI chip architecture is updated rapidly, and corporate R&D cannot keep up with the volatile market share; the second is the risk of concentrated release of production capacity, the future 2 –
In the next three years, domestic production capacity will be released intensively, and the growth rate of downstream demand will be lower than expected. There will be supply and demand reversal and price wars, and corporate profits will decline. The third is the risk of fluctuations in downstream demand. The core driving force of the track is the construction of AI computing power. Global technology giants’ AI capital expenditures have slowed down. Server shipments are lower than expected, and the demand for high-end materials is affected. The fourth is the risk of competition among overseas giants. Domestic substitution is accelerating due to tight overseas production capacity. Overseas giants’ price cuts and expansion will slow down the substitution progress of domestic enterprises.
In short, the material companies in the PCB + semiconductor dual track are supported by real industry performance and are not short-term speculation.
However, this article is only for industry analysis and does not constitute investment advice.
Investors should study industry logic, track data changes, and be responsible for their investments.
