TAIPEI (Taiwan News) — Prices for high-end integrated circuit substrates are expected to increase as strong demand from artificial intelligence servers and high-performance computing tightens supply, benefiting Taiwanese manufacturers, CTEE reported Tuesday.
Industry sources said shortages of key materials are driving demand-based price hikes over multiple quarters rather than one-off adjustments. Market estimates put average price increases at 15%–20% this year, with some specialized products climbing more than 40%.
The first adjustments are due in the latter half of the first quarter. IC substrates are critical components in semiconductor packaging, supporting chips, connecting them to the main circuit board, and protecting their circuits, according to Business Weekly.
Major Taiwanese suppliers, including Nan Ya Printed Circuit Board, Unimicron Technology, and Kinsus Interconnect Technology, are seeing strong demand for Ajinomoto Build-up Film (ABF) substrates. Prices have already risen in double digits.
Market reports said most of Kinsus’ advanced production lines are reserved for AI clients, reflecting demand that now outpaces that of consumer electronics. Unlike the 2022 “super cycle,” which was driven by broad shortages, analysts say current price increases are structural.
AI chip upgrades, increasingly complex packaging, and stricter material requirements are driving demand beyond current production capacity. Upstream supply of low-coefficient of thermal expansion fiberglass cloth remains constrained, with Nan Ya reportedly issuing price notifications to customers.
Demand for bismaleimide triazine (BT) substrates is also rising as AI server designs require high-speed, modular components. IC substrates are generally categorized as BT or ABF.
BT substrates, with fiberglass layers for stability and durability, are used in mobile phones, networking, and memory products. ABF substrates feature finer, highly conductive circuits for CPUs and GPUs.
The reasons behind rising BT and ABF substrate prices differ.
BT substrate price increases are mainly cost-driven, led by higher prices for high-end fiberglass cloth such as T-glass, which accounts for about 15%–20% of total costs. In contrast, ABF substrate prices are rising primarily due to demand from next-generation AI chips, which require larger and more complex substrates.
