Copper-clad laminate price increases spread to high-end products as long equipment lead times constrain substrate expansion
Price increases for mid- and low-end copper-clad laminates are narrowing the gross margin advantage of high-end products. J.P. Morgan expects prices of M7 and above products to rise by more than 10% before the end of 2026; meanwhile, PTFE mass-production processes and substrate equipment supply remain key constraints.
Original source：J.P. MorganFirst published on Unhidea：Original source date：
Key takeaway
Rising prices for mid- and low-end materials are changing the profitability gap across copper-clad laminate grades and driving price increases for high-end products, while PTFE processes and equipment lead times will affect technology choices and the pace of substrate capacity expansion, respectively.
Why is the impetus for high-end copper-clad laminate price increases growing?
Weaving capacity is shifting toward high-end products, pushing E-glass fiberglass cloth prices sharply higher. As a result, monthly price adjustments for mid- and low-end copper-clad laminates rated M6 and below have been fairly frequent since the start of 2026, while price increases for high-end products rated M7 and above have been less frequent.
According to Elite Material, Low-DK fiberglass cloth has historically typically cost about 5 times as much as E-glass, and in some cases 7 to 8 times as much; as E-glass costs have risen, the ratio has narrowed to about 2 times.
The gross margin advantage of high-end copper-clad laminates over mid- and low-end products has also narrowed from around 25 percentage points in the past to potentially just 5 percentage points or less. This means that, alongside product mix upgrades, passing on raw material costs and capacity utilization also affect profitability.
J.P. Morgan believes the continued shift of production resources toward high-end products will support prices of E-glass and mid- and low-end copper-clad laminates. The bank expects prices of M7 and above products to rise by more than 10% before the end of 2026, and expects a favorable price trend for high-end products in 2027 as well.
Why is PTFE still difficult to use as a replacement for high-speed copper-clad laminates?
Several companies in the supply chain for copper-clad laminates, PCBs, and their consumables and equipment have begun or plan to develop PTFE-related products. But J.P. Morgan believes some of this development is preparation for potential technological changes, and whether PTFE can become mainstream remains uncertain.
PTFE has excellent electrical properties, but board fabrication yields and capital expenditure present practical obstacles. During drilling, resin and fibers can clog holes, and fiber pull-out can damage hole-wall quality, requiring appropriate processes and tools.
High-speed materials are also improving: multiple M10 formulation updates are narrowing the electrical performance gap with PTFE, giving existing high-speed copper-clad laminates room to compete.
Why might substrate manufacturers’ capacity expansions fall behind schedule?
After speaking with suppliers of exposure and lamination equipment, among others, J.P. Morgan found that a shortage of skilled technicians and demanding equipment specifications make it difficult for some manufacturers to expand capacity; equipment lead times could reach two years or longer.
After experiencing sharp fluctuations during the pandemic cycle, some equipment suppliers are still waiting for more evidence that the current upcycle is structural, and are therefore cautious about expanding capacity.
Equipment must also be installed and qualified after delivery. On that basis, J.P. Morgan expects additions to substrate capacity to remain constrained at least through 2027–2028. Whether manufacturers can expand on time depends on the order in which they booked equipment and support from end customers; equipment supply will be allocated according to booking time, with priority given to major high-performance computing customers.
