In the first quarter of 2026, the global FPC industry experienced a wave of rising raw material prices, with core raw material prices such as copper-clad laminates (CCL), electrolytic copper foils, and PI films continuing to rise. Coupled with supply chain fluctuations caused by geopolitical conflicts in the Middle East, FPC manufacturers are facing significant cost pressures. However, at the same time, the increase in raw material prices has accelerated the industry reshuffle, driving manufacturers to transform towards high-end, domestic, and intelligent industries, presenting a development trend of "challenges and opportunities coexisting".

The prices of core raw materials have significantly increased, and cost pressures continue to be transmitted. Affected by multiple factors such as the rise in crude oil prices, the soaring prices of precious metals, and the tightening of environmental policies, the prices of FPC core raw materials have comprehensively increased. Among them, copper clad laminate (CCL), as the raw material with the highest proportion of FPC production cost (accounting for more than 30%), has seen a price increase of 10% -15% year-on-year, and high-end Low loss/Ultra low loss materials have even seen a price increase of 15% -20%; The price of electrolytic copper foil has increased by 12% compared to the beginning of the year. Due to the continued high operation of copper prices affected by the Middle East geopolitical conflict, the price of electrolytic copper foil is difficult to fall back in the short term; The price of PI film has increased by 8% -12% year-on-year, and the price increase of high-end PI film is more significant due to its high dependence on imports. According to industry estimates, every 10% increase in the price of copper-clad laminates will directly push up the production cost of FPC by 5% -7%. The profit margins of many small and medium-sized FPC manufacturers will be sharply compressed, and some enterprises may even face the risk of losses.

Supply chain fluctuations have intensified, highlighting delivery risks. The geopolitical conflict in the Middle East not only drives up raw material prices, but also has a serious impact on the global supply chain. Due to shipping companies avoiding the Suez Canal and circumnavigating the Cape of Good Hope, the shipping time for raw materials has been extended, resulting in a significant increase in logistics costs. As a result, the delivery cycle for some raw materials has been extended from 15-20 days to 30-40 days. At the same time, some raw material companies have abandoned fixed quotations and implemented a "price per order negotiation" mechanism, with the validity period of quotations limited to the same day. This has made it difficult for FPC manufacturers to accept orders and schedule production normally, resulting in a sudden increase in business risks. In addition, there is a serious shortage of auxiliary materials such as electronic grade fiberglass cloth, which further exacerbates the pressure on the supply chain.

Industry differentiation is intensifying, and top manufacturers are accelerating their transformation and breakthroughs. Faced with cost pressure and supply chain risks, the industry presents a clear differentiation pattern: top FPC manufacturers rely on their scale advantages and supply chain integration capabilities to lock in raw material prices through centralized procurement, long-term agreements, and other means, alleviating cost pressure; At the same time, accelerate the localization and substitution of high-end materials, increase research and application of domestically produced PI films and copper-clad laminates, and reduce dependence on imported materials. In addition, top manufacturers have upgraded their products through intelligent technology, adopting roll to roll (R2R) continuous production processes and AI visual inspection systems to improve production efficiency, reduce defect rates, and further absorb the impact of rising costs.

In the long run, the wave of price increases drives the high-quality development of the industry. The rise in raw material prices and supply chain fluctuations have forced small and medium-sized manufacturers to exit the market, accelerating industry reshuffling and promoting an increase in industry concentration. At the same time, high-end, localization, and intelligence have become the core transformation directions for FPC manufacturers, and domestic high-end material enterprises are accelerating their rise. The localization rate of high-end PI is expected to exceed 30% by 2026, and the independent controllability of the supply chain continues to improve. For FPC manufacturers focusing on high-end fields such as automotive electronics and AI, technological barriers and stable delivery capabilities will become core competitive elements, which are expected to seize the opportunity in industry transformation and promote the development of the entire FPC industry towards high quality and high added value.