AI packaging demand exposes supply-chain gaps for Taiwan materials makers

The surge in AI computing demand is reshaping the packaging supply chain, exposing critical bottlenecks among materials suppliers in Taiwan. Key upstream materials such as substrates, adhesives, and metallization layers are already under strain, with ASE and others unable to meet demand, signaling urgent need for capacity expansion and technological upgrades. From a compliance standpoint, geopolitical tensions are intensifying supply chain risks, especially amid U.S.-China tech decoupling, pushing companies toward localization and self-reliance. Competitors may accelerate overseas investments or form strategic alliances to mitigate exposure. Over the next 12–24 months, the push for domestic substitution in packaging materials will accelerate, particularly in high-performance computing sectors like data centers and AI servers. Taiwanese suppliers face mounting pressure from both technological barriers and production scaling, accelerating industry consolidation.