CPIC announced on the evening of August 31 a plan to raise no more than RMB 5 billion, with proceeds allocated to high-frequency, high-speed electronic fiberglass cloth, production line upgrades, pilot testing of ultra-low-dielectric-loss Q cloth, and working capital.

Electronic fiberglass cloth has emerged as a growth engine for the fiberglass industry amid surging AI computing demand. CPIC' private placement follows a string of large-scale expansion plans unveiled by industry leaders China Jushi and Sinoma Science & Technology, signaling the start of a major new capacity cycle.

Under the plan, CPIC will issue no more than 343 million shares to no more than 35 specific investors. The company has also revised its high-frequency, high-speed electronic cloth project - originally approved by its board on December 29, 2025, with annual capacity of 36 million meters — renaming it the high-performance substrate high-frequency, high-speed electronic fiberglass cloth project, which will serve as the centerpiece of the placement.

The project carries an estimated total investment of RMB 3.021 billion, including RMB 2.72 billion in raised funds. It will involve constructing an electronic fiberglass yarn production facility and renovating an electronic fiberglass cloth production facility at the company's existing plant, creating annual capacity of 25.13 million meters for first- and second-generation LDK (low-dielectric electronic cloth) high-frequency, high-speed electronic fiberglass cloth. Construction is scheduled from December 2025 to June 2027.

The company said supply and demand for first-generation LDK products were broadly balanced in the first half of 2026. From July 2026, technological upgrades accelerated demand toward second-generation LDK high-performance fiberglass cloth, leaving supply short of demand. The project is projected to deliver an after-tax financial internal rate of return of 13.76% and an after-tax static payback period of 7.91 years.

CPIC' move extends an ongoing expansion wave in AI electronic cloth.

China Jushi has expanded electronic cloth capacity three times in 2026. In March, it began production at a Huai'an facility with annual capacity of 100,000 tons of electronic yarn and 390 million meters of electronic cloth. In May, it announced a second Huai'an project — 50,000 tons of electronic yarn and 320 million meters of electronic cloth annually — with total investment of RMB 4.431 billion. In July, it unveiled a Tongxiang production line with annual capacity of 250 million meters, backed by RMB 2.405 billion in investment. Once all three projects are operational, China Jushi's electronic cloth capacity will rise by 960 million meters, lifting its global market share from 23% to a projected 28%.

Sinoma Science & Technology has planned specialty fiberglass cloth capacity exceeding 100 million meters, including three new projects totaling 94 million meters, with the first 35-million-meter phase due to come online progressively in the second half of 2026. The company disclosed a private placement in September 2025 to raise up to RMB 4.48 billion for a high-end custom electronic cloth project, securing registration approval from the China Securities Regulatory Commission in early August 2026.