The explosive demand for high-speed CCL (low Dk/Df materials) from AI servers is driving the CCL industry into a new upgrade cycle. The construction of AI computing clusters promotes high-speed interconnection and high-density integration. Copper Clad Laminate (CCL), as the core substrate for PCBs, is fundamental for ensuring signal integrity and heat dissipation reliability in AI servers. CCL is produced by laminating resin, fiberglass cloth, and copper foil, determining the PCB's dielectric loss and interlayer connection capability, with low loss factor (Df) and high glass transition temperature (Tg) being its core metrics. The surge in AI computing demand directly boosts downstream PCB requirements, consequently driving up demand for CCL.

Since April, numerous leading CCL companies have intensively issued price increase notices, significantly improving the visibility of steady growth in CCL profitability. Notably, affected by the ongoing comprehensive price increases for CCL and upstream materials, one supplier has notified customers that CCL quotes will be raised starting April 25th, with price hikes for some product series reaching 20% to 40%.

Iterations in AI server GPU/ASIC architectures are accelerating the migration of CCL material grades from M7 to M8. Some PCBs for Nvidia's Rubin architecture have already adopted M9 materials, and ASIC solutions like Google's TPU are also following suit. Demand for M9 materials is expected to experience explosive growth over the next three years.

Research suggests that price increases of over 30% announced by certain suppliers, followed by domestic leaders, represent a typical scenario of "price hikes translating into realized performance." Furthermore, the leap in material grades from M7 to M8 and M9 signifies the CCL industry's transition from a cyclical product towards a high-speed materials technology sector, undergoing a qualitative change in product structure and value proposition.

Another analysis indicates that the accelerated adoption of AI server applications is driving a surge in demand for upstream materials like electronic yarn and HVLP copper foil. Another major producer recently issued a price increase notice, raising prices for all sheet materials and prepreg (PP) by 10%. Additionally, other high-end CCL suppliers have also successively communicated price increases to their customers.

Considering that this AI-driven super cycle possesses strong sustainability, it is expected to remain in a high-growth phase for the next 3-5 years, thereby providing continuously robust demand for high-end CCL. The tight supply-demand situation for CCL is anticipated to persist until 2027 or even longer.

**Related Hong Kong-listed stocks in the Copper Clad Laminate industry chain:**

**KB LAMINATES (01888)**: On April 28th, this leading CCL company issued a formal price increase notice. Citing high copper prices and tight glass cloth supply leading to sharply rising CCL costs, it announced an immediate 10% price increase for FR-4 CCL and PP.

**KINGBOARD HLDG (00148)**: This company has more diversified operations. Beyond its core CCL business, it is also directly involved in printed circuit boards, chemical products, property development, and investment.

**HANS CNC (03200)**: The company is a leading provider of specialized PCB production equipment solutions in mainland China, primarily engaged in the R&D, production, and sales of dedicated PCB manufacturing equipment. Its extensive range of production equipment spans multiple segments of the PCB industry and covers various production processes such as drilling, exposure, lamination, forming, and inspection.