Semiconductor Upstream Materials "Across-the-Board Price Increases" Copper Foil Composite Concept Rises Sharply, Putailai Surges Over 8%

(Source: Caixin)

The high-frequency, high-speed requirements of AI servers have led to a surge in demand for ultra-high-grade HVLP-4 copper foil. As a new generation of AI products gradually increases in volume, HVLP-4 copper foil is expected to undergo full replacement and accelerated penetration, potentially causing explosive growth in demand.

On March 20, the composite copper foil concept rose, with Putailai (603659.SH) up over 8%, Jiejia Weichuang (300724.SZ), Zhongyi Technology (301150.SZ), Delong Laser (688170.SH), and Hangdian Co., Ltd. (603618.SH) among the top gainers.

According to recent news, on March 10, Jintao Group issued a price increase notice, stating that from the date of order receipt, the prices for all thicknesses and specifications of sheet materials, PP (semi-cured sheets), and copper foil processing fees will be increased by 10%. Additionally, Resonac, a Japanese semiconductor material manufacturer, announced that starting March 1, it will raise prices for printed circuit board (PCB) materials such as copper-clad laminates (CCL) and adhesive films by over 30%.

A recent research report from Changjiang Securities pointed out that the high-frequency, high-speed demands of AI servers have led to a high demand for ultra-high-grade HVLP-4 copper foil. As a new generation of AI products gradually increases volume, HVLP-4 copper foil is expected to fully replace older materials and accelerate market penetration, with demand potentially experiencing explosive growth. From 2026 to 2028, the supply-demand gap for HVLP-4 copper foil is projected to reach 24%, 40%, and 36%, respectively.

Institutions indicate that behind AI’s resource occupation is a fierce competition for resources, with capital chasing high returns. The primary reason for AI’s resource consumption is the rapid expansion of profitable AI demand, attracting capital investment. AI consumes far more resources than traditional industries, leading to a large-scale diversion of equipment, personnel, and funds from traditional sectors, creating a supply gap. Second, increased competition has intensified the “diversion” of capacity, with companies upgrading their production capacity to consolidate technological advantages. Rapid technological advancements in AI also bring uncertainties; achieving “fast and good” product performance and yield is challenging. However, competitors highly value the opportunity for “overtaking on curves,” leading to industry reshuffling. Leading companies and mid-tier firms are actively preparing capital expenditure, technology testing, and customer acquisition, resulting in high-frequency industry changes. Notably, HVLP copper foil is diverting capacity from standard foil production, with priority given to cathode rollers and surface treatment machines for high-end products.