The research report issued by CSC Securities underscores the pivotal role of no-cloth technology in the evolution of high-speed copper interconnects. It's crucial to clarify that this technology doesn't entail the complete elimination of fiberglass cloth from PCBs. Instead, it focuses on strategically reducing or omitting fiberglass cloth in specific dielectric layers, tailored to the performance and reliability demands of the application.

No-cloth technology finds its primary application in two key areas: computing power PCBs and optical modules. Its implementation aims to minimize losses and bolster signal integrity. Notably, there are variations in the insertion positions and material forms between these two applications.

The Rubin Ultra (VR300) NVL576 cabinet switchboard is anticipated to be the trailblazer in adopting no-cloth or reduced-cloth solutions on a large scale. With the escalating shipments of NVL576 cabinets, a significant surge in demand for no-cloth PCBs, CCL/PP, and upstream materials is projected to commence from 2028 onwards.

No-cloth technology is poised to steer the concentration of value within the industrial chain towards the CCL/PP segment. Consequently, it is advisable to accord priority to leading CCL/PP companies. Simultaneously, it's prudent to keep a vigilant eye on the incremental opportunities that may arise in PCB processing and upstream materials.