According to the Huatai Securities Research Report, since the fourth quarter of 2025, there has been a marked increase in the number of new quartz fiber electronic yarn/cloth projects announced by listed companies. Huatai Securities believes that the supply gap for second-generation low dielectric and low thermal expansion electronic cloth is obvious in 2026, and the high volume and price boom is expected to continue. Mass production of Qcloth is expected to begin in the second quarter of 2026, but the scale of demand is still yet to be determined by the downstream technology route. Focus on terminal verification nodes in the first quarter of 2026. Q cloth has strong production processes and customer certification barriers. First-mover companies have advantages in vertically integrated R&D and production. The short-term competitive pattern may be difficult to change, and leading companies with production and customer advantages throughout the industry chain are expected to win.

According to the Huatai Securities Research Report, since the fourth quarter of 2025, there has been a marked increase in the number of new quartz fiber electronic yarn/cloth projects announced by listed companies. Huatai Securities believes that the supply gap for second-generation low dielectric and low thermal expansion electronic cloth is obvious in 2026, and the high volume and price boom is expected to continue. Mass production of Qcloth is expected to begin in the second quarter of 2026, but the scale of demand is still yet to be determined by the downstream technology route. Focus on terminal verification nodes in the first quarter of 2026. Q cloth has strong production processes and customer certification barriers. First-mover companies have advantages in vertically integrated R&D and production. The short-term competitive pattern may be difficult to change, and leading companies with production and customer advantages throughout the industry chain are expected to win.