TAIPEI (Taiwan News) — Taiwan Glass, a leading fiberglass fabric manufacturer, on Monday approved plans to build a new yarn plant with a total investment of NT$2.25 billion (US$72.9 million).

The project will be financed with a mix of internal funds and bank loans. The company said the facility will expand capacity and strengthen market share as demand for advanced fiberglass materials rises, according to CNA.

Fiberglass fabrics are woven from glass-fiber yarns. Their properties — insulation, heat resistance, high strength, water repellency, and durability — make them a key raw material for copper-clad laminates, which are processed into printed circuit boards for electronic devices, according to Sinotrade.

The new plant will focus on low dielectric constant (low-Dk) fiberglass fabrics, which have recently faced supply shortages due to growing demand from artificial-intelligence server applications. Taiwan Glass is among the few domestic manufacturers capable of producing these high-end materials.

As AI and high-speed data transmission expand, traditional electronic fabrics can no longer meet performance requirements. Electronic-grade low-Dk fiberglass fabrics reduce signal loss and improve transmission speed and quality in high-frequency applications while balancing cost, electrical performance, and manufacturability, according to the Bureau of Public Service Pension Fund.

In its third-quarter report, Taiwan Glass posted revenue of NT$30.7 billion and a net loss attributable to parent-company shareholders of NT$960 million, an improvement from the NT$1.525 billion loss a year earlier.