Copper-clad laminate (CCL), the core substrate of printed circuit boards (PCBs), serves as the “physical foundation” of the electronics industry, undertaking three key functions: conductivity, insulation, and mechanical support.
In strategic sectors such as 5G, AI, and automotive electronics, CCL performance directly determines computing density and connection speed. High-end CCL (e.g., high-frequency, high-speed, IC substrates) has become a benchmark for measuring a nation’s competitiveness in electronic materials.
Excess in low-end, vicious competition: Capacity utilization is only about 70%, with a high share of low-end products and average gross margins below 20%.
Heavy dependence on imports for high-end: Domestic localization rates for millimeter-wave radar, AI servers, and advanced packaging substrates are below 20%. Import prices are more than 2.7x higher than export prices.
Supply chain risks: Between 2022–2024, companies like Huawei and ZTE faced delivery delays in 5G base stations due to high-end material “supply cuts.”
High-end substitution: Under policies and external restrictions, domestic certifications are accelerating, with leading players holding a 3–5 year first-mover advantage.
Incremental demand: AI servers require 3–5 times more CCL than traditional servers; millimeter-wave radar materials grow at 25% annually; Chiplet technology further increases substrate demand.
Industry consolidation: Low-end players are exiting, while leaders pursue M&A to achieve synergy in technology and capacity.
By 2027, the share of high-end segments will rise from 30% to 45%, exceeding USD 20 billion in size. China’s growth rate is expected to reach 1.5x the global average.
High-frequency: Nano-ceramic modified materials passed automotive-grade certification (Zhongying Technology).
High-speed: Copper foil treatment reduces loss by 15%, entering NVIDIA’s supply chain.
IC substrates: Photosensitive materials achieved 12μm resolution with yields above 90%.
Capacity: A pilot line in South China launched; Central China base added 600,000 sheets/month; special resin capacity reached 30,000 tons.
AI Computing Power: Data centers driving surging demand for high-frequency, high-speed CCL.
5.5G / 6G: Millimeter-wave base stations and LEO satellites fueling explosive demand for PTFE/ceramic substrates.
Automotive Electronics / Advanced Packaging: EVs require 3x more CCL area than fuel vehicles; ABF substrate shortage exceeds 30%.
Focus on capacity release and customer alignment.
Track automotive/server certifications and breakthroughs in IC substrate yields.
Platform-type companies (covering high-frequency, high-speed, and packaging materials) present “double-alpha” opportunities.
Policy: Included in “chokepoint” projects, with strong local government support.
Technology: Core indicators benchmarked to international standards; yields improving to 85–90%.
Capacity: Entering a concentrated release cycle between 2024–2025.
Telecom Equipment: Domestic 26GHz material entered Huawei’s supply chain; LEO satellite substrates passed aerospace-grade validation.
Automotive Electronics: 77GHz millimeter-wave radar material entered Tesla’s supply chain; automotive IGBT substrates certified by Infineon.
Advanced Packaging: 12μm line substrates passed TSMC CoWoS testing; ABF replacement material adopted by JCET.
Military & Aerospace: Radiation-resistant and ultra-wide temperature range materials remain to be achieved.
Top tier: U.S. and Japanese giants dominate 70% of the high-end market.
Mid tier: Taiwanese players such as Nanya and ITEQ.
Bottom tier: Chinese mainland enterprises rapidly breaking through.
Leading groups: Vertical integration of equipment + materials, with strong cost advantages.
Specialized niche players: Focus on high-growth sub-sectors (high thermal conductivity, ABF substitutes, extreme environment materials).
Equipment innovation: Plasma treatment and similar technologies reduce losses, securing certifications from Apple and others.
Consumer electronics → Telecom equipment → Automotive electronics → Military & aerospace
(from cost advantages → performance benchmarking → automotive-grade certification → extreme environment validation)
Technical breakthroughs: High-frequency performance comparable to Rogers, at 30–50% lower cost.
Customized adaptation: Specialized in RF/millimeter-wave scenarios; passed 288°C triple solder dip without delamination.
Industrial chain synergy: University-industry collaboration + vertical integration shortened R&D cycles to 12 months.
Cost & customer advantage: 20% cheaper at equivalent performance, included in supply chains of Huawei, CommScope, and Rosenberger.
National funds focusing on IC substrate/resin projects.
Enterprises pursuing cross-border M&A to enhance processes.
Equipment innovation companies enjoy premium valuations.
Application layer: Achieving certifications in automotive, military, and server markets.
Localization slope: PTFE penetration rising from 12% → 38%; M6+ substrates from 5% → 25%.
Technical barriers: Fewer than 3 players globally in HVLP5+ copper foil and nano-filled PTFE.
Technological iteration: LCP potentially replacing PTFE.
Lengthy certification cycles: 18–24 months.
Raw material volatility: Heavy dependence on imported PTFE.
Geopolitical risk: Export bans may extend to materials.
The breakthrough in high-end CCL represents an industrial upgrade battle of “material innovation → equipment autonomy → certification success.”
Domestic localization is rising from 20% toward 50%, with valuation logic shifting from “cyclical attributes” to “growth premium.”
The next phase’s winners will not only be “substituters” but also future definers of global industry standards.
