Copper Prices Surge as Fiberglass Cloth Shortage Deepens; Taimide Hits Limit-Up

Preface

Global copper supply constraints and rising demand for advanced fiberglass cloth are creating a new wave of cost pressure across the printed circuit board (PCB) materials sector. On October 20, 2026, Taimide Tech. (德宏, 5475-TW), a fiberglass-cloth manufacturer, reached its daily trading limit amid higher material prices and growing interest in its product mix. The company’s gross margin has recovered markedly from earlier losses, while its plans for high-end quartz-fiber cloth have added a longer-term development angle. This article examines the forces behind the latest PCB-material price increases, the market outlook for copper, Taimide’s financial recovery, and the status of its advanced-material initiative. It also distinguishes between current operating improvements and potential future contributions: the company’s improved profitability is already evident, but quartz-fiber cloth remains at the customer-qualification stage.

Lazy bag

PCB-material suppliers are facing pressure from both limited copper supply and tight fiberglass-cloth availability. Copper prices and forecasts have risen, while demand from AI servers and high-speed switches is absorbing capacity for higher-value cloth. Taimide reached 228.5 yuan, up 9.86%, on October 20, 2026. Its gross margin climbed to 33.43% in the first half of the year and 36.62% in the second quarter, supported mainly by fiberglass-cloth pricing and a better product mix. Quartz-fiber cloth could offer a higher-value opportunity, but it has not yet become a material source of revenue.

Main Body

A two-sided supply squeeze is driving the latest price movement in PCB materials. Copper has become more expensive as global mine supply tightens, raising input costs for copper foil and copper-clad laminate (CCL) producers. At the same time, demand for advanced fiberglass cloth used in AI servers and high-speed switches is growing. As producers shift capacity toward higher-value grades, the availability of conventional electronic-grade fiberglass cloth can also be constrained. These related pressures are feeding into price increases across upstream PCB materials.

Taimide’s share price reflected this backdrop on October 20, 2026. The fiberglass-cloth maker reached the daily limit at 228.5 yuan, a gain of 9.86%. The move came as investors assessed the prospect of higher fiberglass-cloth prices, the company’s improved product mix, and its potential entry into high-end quartz-fiber cloth. The price action is a market response to these factors; it does not, by itself, establish that new products have already generated substantial revenue.

Copper supply is one important part of the cost story. On October 20, BHP (必和必拓, BHP-US), a major mining company, reported copper production of 400,700 tons in the first quarter of fiscal year 2027, down 19% year over year. Its realized copper price was up 53% year over year. The production decline and higher realized price point to a tighter supply environment, with potential consequences for companies further down the value chain. Copper foil and CCL manufacturers may face greater cost pressure when the price of their main raw material rises, particularly if they cannot pass those costs through quickly.

Brokerage forecasts also indicate expectations for a stronger copper market. In early October, Bank of America raised its long-term copper-price forecast by 20% to US$12,000 per ton and projected an average copper price of US$15,300 in 2027. UBS expects the copper-market supply deficit to widen to 379,000 tons in 2027 and sees the price potentially reaching US$15,500 per ton. These are forecasts rather than confirmed future outcomes, but they illustrate why market participants are monitoring mine output, demand, and pricing closely.

The second pressure point is fiberglass cloth. AI servers and high-speed switches require increasingly advanced materials, and their continued demand is placing pressure on the supply of higher-grade cloth. When producers allocate more capacity to products with greater added value, fewer resources may remain available for standard electronic-grade materials. This can tighten supply across product categories, even if the demand increase is initially concentrated in advanced applications. Consequently, manufacturers using conventional grades may also encounter higher prices or less flexible sourcing conditions.

On October 13, Kinwong (建滔), a major Chinese CCL producer, announced a 15% price increase for boards and prepreg (PP) made with fiberglass cloth rated 2116 and below. The announcement is an example of how upstream supply conditions are affecting downstream material pricing. Kinwong has raised prices eight times this year, and increases for some products have reached 15%. Repeated adjustments underscore the strength of current cost pressures, although the effect on individual companies will depend on product specifications, contracts, inventory, and their ability to pass costs through to customers.

Taimide is among the companies that may benefit indirectly from higher fiberglass-cloth prices. Its financial performance has improved after an extended period of losses. The company previously recorded 14 consecutive quarters of losses. Its gross margin was just 2.78% in 2024, recovered to approximately 19.4% in 2025, and then rose to 33.43% in the first half of this year. The second-quarter gross margin reached 36.62%, and quarterly profit exceeded the company’s full-year profit in the previous year. The figures indicate a significant improvement in profitability, although they do not guarantee that the same trajectory will continue.

The company has attributed part of the improvement to a more favorable market environment. China’s “anti-involution” policy has encouraged industry participants to adjust pricing, while recovering demand has helped improve the earnings structure. Higher fiberglass-cloth quotations and a better product mix have been central to Taimide’s current recovery. These factors are more directly connected to the company’s reported results than its newer quartz-fiber initiative, which remains under development and qualification.

Taimide is also positioning itself for potential demand from next-generation AI infrastructure. As NVIDIA’s (輝達, NVDA-US) next-generation Rubin platform contributes to a shift toward PCB materials at the M9 level, attention has turned to quartz-fiber cloth, which is valued for its low signal loss. The material is intended for applications where signal performance is important, making it relevant to advanced computing and networking hardware. However, industry interest in a material should be distinguished from completed customer qualification, production ramp-up, and recognized sales.

The reported price range for Q-cloth is approximately US$38.7 to US$44.7 per meter, substantially above the US$17.9 to US$22.4 per meter reported for second-generation Low-Dk fiberglass cloth. The price comparison highlights the potential value of the product category, but price alone does not determine profitability. Production costs, manufacturing yields, customer requirements, qualification timelines, and the scale of orders will all influence the eventual financial contribution.

Taimide has invested in related technical development and plans to convert its Yangmei plant into a quartz-cloth production base. This plan may provide a pathway to participate in a higher-value materials segment if the product meets customer requirements and can be manufactured at commercial scale. At present, however, Q-cloth is still at the customer-qualification stage, and its actual revenue contribution is limited. The company’s current earnings recovery therefore remains primarily linked to fiberglass-cloth price improvements and product-mix optimization, rather than meaningful sales of quartz-fiber cloth.

Looking ahead, two developments will be particularly important for assessing whether Taimide can sustain its progress. First, market participants will need to watch whether fiberglass-cloth prices remain elevated and whether tight supply persists. A reversal in pricing or a change in customer demand could affect the benefits currently supporting margins. Second, the pace of Q-cloth customer qualification and eventual mass production will determine whether the company can turn its technical investment into a significant new business. Until those milestones are reached, the advanced-material opportunity should be viewed as a potential growth driver, not an established source of earnings.

Overall, Taimide sits at the intersection of rising copper costs, constrained fiberglass-cloth supply, and growing demand for materials used in AI infrastructure. Its recent margin improvement provides evidence of an operating recovery, while the planned quartz-cloth business offers a possible longer-term expansion path. The central distinction is between what is already reflected in performance—higher fiberglass-cloth quotations and a better product mix—and what remains prospective: qualification and commercialization of Q-cloth. Both supply conditions and execution will shape the company’s next stage.

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