Classified by the upstream and downstream of the industry chain, it can be divided into raw materials - copper-clad laminates - printed circuit boards - electronic product applications. Its relationship is simply expressed as follows: Foslite Electronics Industry Chain Fiberglass Cloth: Fiberglass cloth is one of the raw materials for copper-clad laminates, woven from fiberglass yarn, accounting for about 40% (thick plate) and 25% (thin plate) of the cost of copper-clad laminates. Fiberglass yarn is made by calcining raw materials such as silica sand into a liquid state in a kiln, pulling them into extremely fine glass fibers through extremely small alloy nozzles, and then twisting hundreds of glass fibers into fiberglass yarn. The construction investment of kilns is huge, usually requiring hundreds of millions of funds, and once ignited, it must be produced continuously for 24 hours, with huge entry and exit costs. Fiberglass cloth manufacturing is similar to weaving enterprises, which can control production capacity and quality by controlling the speed, and the specifications are relatively single and stable, with almost no significant changes in specifications since World War II. Unlike CCL, the price of fiberglass cloth is most affected by supply and demand, with prices fluctuating between $0.50-1.00 per meter in recent years. At present, Taiwan and mainland China account for about 70% of the global production capacity. Copper foil: Copper foil is the largest raw material in the cost of copper-clad laminates, accounting for about 30% (thick plate) and 50% (thin plate) of the cost of copper-clad laminates. Therefore, the price increase of copper foil is the main driving force for the price increase of copper-clad laminates. The price of copper foil is closely reflected in the price changes of copper, but its bargaining power is weak. Recently, with the continuous rise of copper prices, copper foil manufacturers are in a difficult situation, and many companies have been forced to go bankrupt or be merged. Even if copper-clad laminate manufacturers accept the increase in copper foil prices, copper foil manufacturers are still generally in a state of loss. Due to the emergence of a price gap, there is a high possibility of another wave of price increases in the first quarter of 2006, which may drive up CCL prices. Copper clad laminate: Copper clad laminate is a product made by pressing fiberglass cloth and copper foil together with epoxy resin as a fusion agent. It is the direct raw material of PCB and is made into printed circuit board after etching, electroplating, and multi-layer board pressing. The capital demand for the copper-clad laminate industry is not high, about 30-40 million yuan, and can be stopped or converted at any time. In the upstream and downstream industrial chain structure, CCL has the strongest bargaining power. It not only has a strong say in the procurement of raw materials such as fiberglass cloth and copper foil, but also can transfer the pressure of cost increases to downstream PCB manufacturers as long as downstream demand is still acceptable. In the third quarter of this year, copper-clad laminates began to raise prices, with a price increase of about 5-8%. The main driving force is to reflect the price increase of copper foil, and the strong downstream demand can digest the price pressure passed on by CCL manufacturers. The world's second largest copper-clad laminate manufacturer, South Asia, also raised product prices on December 15th, indicating good demand for PCBs in at least the first quarter of 2006.