Successfully entered the AI server supply chain, my country's fiberglass output value has grown at a double-digit rate for two consecutive years

The Ministry of Economic Affairs pointed out that my country's fiberglass industry has grown at a double-digit rate for two consecutive years since 2013 due to the successful entry of domestic manufacturers into the AI ​​server supply chain. In the first eight months of this year, the output value increased by more than 30% year-on-year, and the full-year output value this year is expected to hit a new high.

The Statistics Office of the Ministry of Economic Affairs explains that my country's fiberglass industry (fiberglass industry) covers two types of products: "glass fiber" and "fiberglass woven cloth (fiberglass cloth)". In addition to weaving fiberglass cloth, glass fiber is also used in composite materials such as building materials and automobile components. Fiberglass cloth is a key material for copper foil substrates and belongs to the upstream of the printed circuit board (PCB) industry chain.

The Census and Statistics Department pointed out that in recent years, benefiting from the expansion of artificial intelligence (AI) and high-performance computing, domestic manufacturers have successfully entered the AI ​​server supply chain, getting rid of the decline in output value due to the impact of inventory adjustments in the global electronics industry in 2011 and 2012, and growing at double-digit rates for two consecutive years since 2013. In the first eight months of this year, the output value reached 23.8 billion yuan, an annual increase of 36%. The full year is expected to exceed the historical high of 31.3 billion yuan in 107 years.

It is worth noting that the output value of fiberglass cloth increased by 49.7% due to the low dielectric (Low-DK) specifications required for high-end carrier boards. Its proportion of the overall fiberglass industry output value increased from 52% in 110 to nearly 70% this year. It is the main driving force for this year's output value to reach a record high.

Further analyzing the domestic and foreign sales markets, the Statistics Department pointed out that my country's fiberglass industry used to be mainly exported, and the proportion of direct export sales has remained around 60% for a long time. However, in recent years, the demand for AI applications has increased, which has led to the expansion of domestic demand for high-end copper foil substrates and other electronic industries. Domestic sales of the fiberglass industry have also heated up, and the proportion of domestic sales has increased from 38.5% in 2010 to 44.1% in August this year, an increase of 5.6 percentage points.

According to product observation, glass fiber cloth benefited from the increase in domestic demand for electronic materials, and the proportion of domestic sales rose from 29.3% in 2010 to 35.2%, an increase of 5.9 percentage points. As manufacturers' production capacity shifted to high-end specification products, glass fiber cloth's traditional specification production capacity was squeezed, which reduced external sales, causing the domestic sales proportion to increase from 47.2% to 63.6%, an increase of 16.4 percentage points.

Looking at the main export regions, the Statistics Department pointed out that the export value of my country's fiberglass industry last year was US$520 million, an annual increase of 25.2%. The main export markets were China (including Hong Kong) accounting for 43.3%, Japan accounting for 16.4%, the United States accounting for 15.2% and South Korea accounting for 9.6%.

The export value of the fiberglass industry in the first nine months of this year reached US$490 million, an annual increase of 26.6%. Exports to Japan increased by 76.5% annually. Due to increased demand for high-bandwidth memory (HBM) and high-end packaging, my country's exports to South Korea increased by 54% annually, surpassing the United States and ranking third. Exports to China (including Hong Kong) increased by 30.6% annually. In the first nine months of this year, the total export share of China, Japan and South Korea accounted for 77.8%, an increase of 15.9 percentage points compared with 2010.