Which CCL Leader Is Most Profitable? A Comparison of EMC, TUC, and ITEQ

Preface

As AI server architectures evolve and high-end 800G and 1.6T switches gain traction, demand for advanced copper-clad laminate (CCL) is growing. Taiwan’s three major CCL suppliers—Elite Material (台光電, 2383-TW), TUC (台燿, 6274-TW), and ITEQ (聯茂, 6213-TW)—are all operating in a market where constrained materials and strong demand are supporting price increases. Yet their paths to higher earnings differ. Elite Material benefits from leading specifications and a strong position in advanced materials; TUC is gaining ground in M7 and M8 products for switches and ASIC projects; and ITEQ has greater earnings sensitivity to price increases in mid- and lower-tier products. This article compares their product strategies, pricing momentum, and supply constraints, while outlining the factors that could shape the industry’s next phase. The analysis is informational and is not investment advice.

Lazy bag

The CCL upcycle is being driven by AI servers, ASIC projects, and shortages of advanced materials. Elite Material stands out for its M9 and substrate CCL positioning, while TUC is expanding its exposure to M7/M8 materials for 800G and 1.6T switches and ASICs. ITEQ may see particularly strong earnings leverage from price increases in its historically mid- and lower-tier product mix. However, the shared constraint is not a lack of orders but limited supplies of high-end glass cloth and HVLP copper foil. The key question is whether growth can shift from price increases to specification upgrades and higher shipments by 2027.

Main Body

Why CCL prices are rising

AI servers and faster networking equipment require materials that can support high-speed signal transmission while limiting dielectric loss. This has intensified demand for advanced grades such as M7, M8, and M9, including materials used in ASIC-related projects. At the same time, key inputs have become difficult to secure. These include high-end HVLP copper foil and high-grade electronic glass cloth, such as T-Glass and Low Dk varieties.

Industry data cited by UAnalysis Industry Database identifies these demand and supply pressures as the main drivers of the current pricing cycle. With end-market demand strong and input costs rising, CCL makers have been raising selling prices to reflect costs. If these increases are sustained, they can lift average selling prices (ASP) and support gross margins. The benefit, however, depends on product mix, access to raw materials, and each company’s ability to ship the products customers have ordered.

Elite Material: M9 and substrate CCL target the high end

Elite Material is described as a global CCL leader, with a 38.6% share of the high-speed CCL market in 2025. It also has more than 70% share in high-end HDI materials and more than 90% in SLP materials. Its strengths are technical leadership and production scale, and it is identified as a major supplier to Nvidia, Google, and AWS.

The company’s most profitable opportunities are expected to come from M9 materials and substrate CCL. Analysts estimate that M9 gross margin could exceed 40%. M9 entered mass production in the second half of 2026, with volume expected to increase in the third quarter as GPU customers ramp up. Substrate CCL shipments are expected to begin in early 2027, with estimated gross margin of 40~50% or more.

Order visibility extends into 2027, and some long-term contracted capacity is described as nearly sold out for the next two years. Elite Material also has raw-material allocations and technical advantages. In a shortage, those strengths may support both higher prices and share gains. The source material says another price increase for selected products in the fourth quarter cannot be ruled out, with larger adjustments for products below M6. Its central advantage is therefore not simply exposure to industry-wide increases: it combines high-end product positioning with comparatively secure access to materials.

TUC: M7 and M8 exposure to switches and ASICs

TUC has more than 20% share of the M7+ high-speed CCL market. Its strengths are tied to 800G and 1.6T switches and ASIC projects. M7 and M8 materials are its most promising product lines for earnings growth, as they serve the higher performance requirements of these applications.

Products at M7 and above accounted for 39% of revenue in the second quarter of 2026. That proportion is forecast to rise to 40%~50% in the second half. The AWS Trainium 3 ASIC project began ramping in the second quarter of 2026, while new capacity at TUC’s Thailand plant came on line earlier than planned. Based on this expansion and the product mix shift, the high-end share of revenue could exceed 50% in 2027.

TUC’s gross margin rose to 29.7% in the second quarter of 2026, supported by strong demand for high-end switches and higher product prices. At the end of April 2026, the company raised prices for high-end M7 and M8 products by approximately 40%. Prices for mid- and lower-tier products increased by 10% to 20%, bringing the overall increase for the second quarter to approximately 30%. Further increases of 10% to 15% per quarter were expected in the second half of 2026. These figures illustrate the scale of the pricing cycle, although actual earnings also depend on shipments, product mix, and material availability.

ITEQ: Pricing leverage across a broader product mix

ITEQ is described as Taiwan’s largest CCL producer by domestic capacity. Its strengths are in the general-purpose server market: it has more than 60% share of AMD platforms and approximately 3～4成 (about 30%–40%) of Intel platforms. Its opportunity is linked in part to upgrades in general-purpose servers, including the move to PCIe Gen 6.

M7 and M8/M9 advanced materials are identified as ITEQ’s most profitable product lines. M7 material has a gross margin 3~5 percentage points higher than M6, while future M9 products could potentially reach a gross margin of 50%. ITEQ has a smaller proportion of high-end AI business than Elite Material. However, its historical product mix has leaned more toward mid- and lower-tier products. When the wider industry raises prices, increases across that mix can provide significant earnings leverage, provided the company can obtain enough materials to fulfill orders.

ITEQ’s cumulative price increase from April to May 2026 was approximately 20%, and the increase for the second quarter alone reached 30%. Further increases of 15%~20% per quarter were expected in the third and fourth quarters. Its pricing mechanism also changed from quarterly negotiations to monthly adjustments. Monthly reviews may allow prices to respond more quickly to changing costs and supply conditions, but the resulting impact on margins still depends on whether higher selling prices outpace input-cost increases.

The common constraint: glass cloth and HVLP copper foil

For all three companies, the main challenge described is not a shortage of customer orders but a bottleneck in upstream supply. High-end glass cloth, particularly T-Glass and Low Dk varieties, and HVLP4 copper foil are the materials at the center of the constraint. The source says Elite Material’s long-term material arrangements and advanced specifications give it the most direct benefit from the tight market. TUC and ITEQ, by contrast, are more restricted by material availability, with utilization rates held at 70%~75% and some orders unable to ship.

Glass cloth: Japan’s Nittobo (日東紡) high-end T-Glass production lines are operating at full capacity. Expansion is not expected to bring capacity to three times the 2025 level until fiscal year 2028. Because production is prioritized for T-Glass, supply of mid- and lower-tier E-glass is also being crowded out, creating shortages across both high- and low-end glass cloth. New capacity from China Jushi and Taishan Fiberglass is expected to come on line from 2026Q4 to 2027Q1, which could ease pressure on mid- and lower-tier cloth.

High-end copper foil: Mitsubishi Materials’ HVLP production capacity is booked through 2030 and beyond. Under the company’s announced expansion plan, the first phase is expected to raise VSP monthly capacity to 1,200 tons in 2028. The second phase is planned to increase it to 1,400 tons in 2030. A new plant in Malaysia is expected to begin production from 2031, with a plan to expand VSP monthly capacity to 2,600 tons in 2033.

Industry expansion: South Korea’s Doosan Group plans to invest 970 billion Korean won in additional capacity. Shengyi Technology and Kingboard Holdings are also expanding. Much of the related new capacity is concentrated in the second half of 2028, meaning the industry may need to navigate supply constraints before these additions become available.

What to watch next

The current growth phase is driven substantially by price increases, but that driver cannot be evaluated separately from supply. Companies need raw materials not only to maintain production but also to convert advanced orders into shipments. Elite Material appears best positioned in the source comparison because of its long-term material arrangements and leading specifications. TUC has a clear route to a larger high-end mix through switch and ASIC demand, while ITEQ’s earnings sensitivity is amplified by the breadth of price increases in its product portfolio.

The timing of new glass-cloth and copper-foil capacity will help determine how quickly the supply bottleneck eases. Investors and industry observers will also be watching whether 2027 becomes a turning point: can growth move beyond price increases toward specification upgrades and higher shipment volumes? The distinction matters. Price increases can improve revenue per unit, but durable growth also depends on supplying customers consistently, expanding high-end products, and converting capacity into actual deliveries.

Source note: This article is adapted from material authorized for reprint by UAnalysis. It is for informational purposes only and does not constitute investment advice. References to individual stocks, funds, and futures are not recommendations. Readers should make independent judgments and carefully assess risk.

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