AI chip boom strains ABF substrate supply chain

The AI chip surge has thrust ABF substrates—once a quiet enabler—into the epicenter of supply chain strain. Technically, shortages are not only delaying high-end GPU shipments but also accelerating TSMC’s and Intel’s R&D into alternative materials for CoWoS and EMIB packaging, hastening commercial adoption of silicon interposers and hybrid bonding. On compliance, tightening Japanese and U.S. export controls on critical materials erect certification and yield hurdles for non-Japanese players like Doosan and Shengyi Tech, inflating regionalized supply costs. Strategically, NVIDIA and AMD may lock capacity via advance payments, while Intel leverages in-house substrate investments to gain bargaining power. Over the next 18 months, chronic ABF undercapacity will cement packaging as the new bottleneck, compelling China to fast-track domestic photosensitive polyimide alternatives and likely triggering M&A waves in equipment and materials sectors.