The rapid advancement in large model training and the swift development of computing power clusters this year have accelerated the iterative upgrade of AI server hardware architectures. Consequently, there has been a significant surge in demand for High-Velocity Low-Profile (HVLP) copper foil, which serves as the conductive base material for printed circuit boards (PCBs) and copper-clad laminates.
Research from Soochow Securities indicates that the global market demand for HVLP copper foil dedicated to AI servers is projected to reach 24,000 metric tons by 2026, representing a 260% year-on-year increase. It is further estimated that this demand will grow to 50,000 metric tons by 2027 and is expected to surpass 110,000 metric tons by 2030.
Explaining the technical rationale, Yang Delong, Chief Economist and Fund Manager at Qianhai Kaiyuan Fund, noted that electrical current travels through a micron-thin surface layer of the copper foil. Standard copper foil has a relatively high surface roughness, which is insufficient for the stable operation of multi-GPU interconnected architectures. In contrast, high-end copper foil can maintain surface roughness below 1.0μm.
Initial Steps by Key Players
In response to this market trend, several listed companies within the copper foil supply chain are actively expanding their operations.
Jiujiang Defu Technology Co., Ltd. has announced plans for a total investment of 3.1 billion yuan to construct a project with an annual production capacity of 50,000 metric tons of high-end AI electronic circuit copper foil. The fixed asset investment for this project is approximately 2.1 billion yuan.
Anhui Tongguan Copper Foil Group Co., Ltd. reported that its complete series of HVLP copper foil products, spanning from the 1st to the 4th generation, have already been supplied to customers. The current primary product for shipment is the 2nd generation HVLP copper foil. Additionally, the company is developing its 5th generation HVLP copper foil and has reportedly achieved breakthroughs in key performance indicators.
Ganzhou Yihao New Materials Co., Ltd. has completed the construction of a fundraising project for an annual production capacity of 10,000 metric tons of high-precision electrolytic copper foil. The company is currently advancing the installation and commissioning of major production equipment.
A representative from Yihao New Materials stated that the company will actively promote the integration of its high-end copper foil products into the AI computing power supply chain. This initiative aims to further expand its customer base and increase its coverage among leading domestic and international enterprises.
Diversification into a New High-Growth Sector
Notably, leading manufacturers of lithium battery copper foil are concurrently entering the high-end AI electronic copper foil market, aiming to establish dual growth trajectories in both new energy and computing power materials. For instance, Guangdong Jia Yuan Technology Co., Ltd. emphasized its significant focus on the research, development, and production of HVLP copper foil products, which are currently undergoing customer validation.
On an investor interaction platform, Jia Yuan Technology disclosed that its electrolytic copper foil production lines in the Ganzhou region of Jiangxi Province have a total planned capacity of 35,000 metric tons, with over 10,000 metric tons already operational. These production lines primarily manufacture electronic circuit copper foil products.
Pan Helin, a member of the Expert Committee on Information and Communication Economy at the Ministry of Industry and Information Technology, commented that AI computing power and related technologies will continue to drive the upgrading of copper foil products. The capacity structure is also expected to shift towards high-value-added, premium categories. As the shipment volume of high-end copper foil continues to rise, the gross profit margins for companies across the industrial chain are anticipated to improve steadily.