Elite Material posts record 2Q result on strong AI-related demand

Elite Material's record Q2 results highlight the robust demand for advanced materials in AI hardware, signaling a strong upstream tech chain reaction. CCL, as a core substrate in chip packaging, drives demand for upstream copper foil and resin suppliers. As AI compute needs surge, the reliance on high-performance materials intensifies, creating a positive feedback loop. However, supply chain concentration in Taiwan, China and South Korea introduces geopolitical risks; any escalation in U.S.-China tech decoupling may force repositioning of production capacity. Competitors like Nanya Technology and Taino may accelerate capacity expansion to capture market share, while also accelerating domestic substitution. Over the next 12–24 months, sustained AI growth will likely keep material prices high, but as technology matures and supply ramps, the industry will enter a phase of structural adjustment, with leading firms maintaining edge through technological moats and supply chain integration.