If the material is produced by termites, they're in a dead part of the tree. They don't eat live plants.

Photos could help us confirm your suspicions.

I can't post a photo. Don't have internet. I use my phone and GW doesn't allow photos from my phone. I could take a photo in the morning and email a picture to someone. It doesn't seem like dead wood. It's on one of the main branches and it's growing new buds on the tips of all the other smaller branches. It is odd.

Highly unlikely that your fig tree is infested with termites, ants probably and possibly one or more of many other pests. Have you talked with the people at your Univesity of California Cooperative Extension Service abot possible insect pests?

Here is a link that might be useful: Fig IPM guide

Thank you kimmsr! I read everything on the link you posted and it's Carpenter worms! They burrow in the wood and the pic it showed was exactly how mine looks like. But I will ask extension just to confirm. Hopefully mystery solved! Thanks again so much!!!