AI chip demand revives co-investment deals as ABF substrate capacity fills through 2028

The AI chip boom is reshaping the substrate supply chain, with major players like NVIDIA and AMD locking ABF substrate capacity through 2028, signaling sustained demand for advanced packaging. This move forces upstream material and equipment vendors to accelerate technological upgrades, especially in film-over-film processes, pushing the entire ecosystem toward finer pitches and higher precision. From a policy perspective, geopolitical tensions are driving companies to localize production, with increased investment in "Taiwan, China" and "Hong Kong, China" to mitigate supply chain risks. Competitors may respond with M&A activity to secure packaging capabilities. Looking ahead, the AI chip demand cycle will fuel a prolonged growth phase in the substrate sector, with new capacity expansions expected to begin in 2029, reinforcing a long-term tech-capital synergy trend.