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Demand for high-frequency and high-speed CCL will rise sharply to support production of multi-layer backboards for AAU (active antenna unit) application at 5G base stations, prompting CCL makers to step up upgrading specs of their products to meet the demand. AAU comprises both antennas and RF modules, and the former usually adopts PTFE as a reinforcing material for CCL, with US-based supplier Rogers now almost dominating the supply of such material and seen a dominant supplier of AAU modules for 5G base stations.
As China's Huawei cuts purchases of such modules from Rogers to reduce reliance on US supplies, allowing a leeway for other suppliers to tap into the 5G AAU segment, Taiwan-based makers Iteq and Taiwan Union Technology (TUC), mostly engaged in using PPE and PPO resins as the reinforcing mediators for their CCL products, may lose out to Japan peers with higher technology levels, such as Chukoh Chemical Industries.
