CITIC Securities: Low-Dk electronic yarn in short supply, localization accelerates breaking the deadlock.

CICC research report points out that the traditional electronic cloth market will see price recovery in 2024-2025, with multiple companies successfully raising prices in 2025Q1. The price of electronic yarn has increased by over 17% year-on-year, thanks to the improvement in market supply and demand structure and limited changes in production capacity. At the same time, the demand for AI servers and high-frequency communication is driving the insufficient supply of Low-Dk electronic yarn, with the global market size for 5G low-dielectric electronic yarn and electronic cloth reaching approximately $1.35 billion in 2023 and expected to reach $5.28 billion by 2030, with a compound annual growth rate of 21.4%. Currently, Japanese and Taiwanese companies occupy a large market share in the low-dielectric electronic cloth market, but domestic companies have aggressively expanded production since 2024Q4. It is expected that after the new domestic production capacity comes online in the second half of 2025, domestic companies will increase their market share and achieve performance growth.