The global HVLP (Very Low Profile) copper foil market is experiencing significant growth this year, primarily driven by rising demand for AI servers. HVLP copper foil is a critical material in the electronics and semiconductor industries, especially for manufacturing advanced printed circuit boards used in high-performance computing applications like AI servers. Currently, Japan and South Korea dominate global HVLP copper foil production. These countries lead due to their advanced production technologies, stringent quality controls, and strong industrial bases, giving them a competitive edge developed over decades. This dominance enables them to satisfy the high standards required by the semiconductor and electronics sectors. Meanwhile, Chinese producers are actively pursuing import substitution by achieving technological breakthroughs in HVLP copper foil manufacturing. This effort is motivated by market demand and strategic goals to increase self-sufficiency in essential technology materials. Notably, Tongguan Copper Foil has successfully mass-produced HVLP copper foil across multiple generations (from generation 1 to generation 4), demonstrating the capability of Chinese manufacturers to produce high-quality copper foils that meet international standards and potentially compete with established foreign products. Another prominent Chinese company, Defu Technology, is dedicated to research and development of the next-generation HVLP copper foil (generation 5). Defu’s work reflects China's commitment to advancing HVLP copper foil technology beyond current global benchmarks. China’s push for innovation in HVLP copper foil aligns with its broader strategy to reduce import dependence in critical tech sectors.

As AI and other high-performance computing applications grow rapidly, securing a stable, domestically produced supply of high-grade HVLP copper foil becomes increasingly vital. This trend highlights both the rising capabilities of Chinese manufacturers and a shifting global supply landscape for critical electronic materials. If Chinese producers continue scaling advanced HVLP copper foil successfully, the current market dominance of Japan and South Korea may gradually decline, enhancing supply chain security and encouraging competitive pricing that benefits global customers. Beyond AI servers, the advancement in HVLP copper foil technology is crucial for sectors like 5G, electric vehicles, renewable energy systems, and Internet of Things devices. Its properties—ultra-thinness and excellent electrical performance—make it essential for miniaturizing electronic components and improving device reliability. In summary, the HVLP copper foil market stands at a pivotal juncture, fueled by growing AI-driven demand and a shifting supply dynamic. While Japan and South Korea retain dominance, Chinese companies such as Tongguan Copper Foil and Defu Technology are rapidly advancing technologically and expanding production. These developments signify China’s rising role in high-tech materials and are poised to reshape the competitive landscape of HVLP copper foil, with broad implications for global technology supply chains and innovation. Industry observers will closely watch these unfolding trends in the coming years.