Global IC substrate market to surge 32% to US$19.5 billion in 2026 as Taiwan, Korea lead ABF, BT

The surge in demand for generative AI and high-performance computing is reshaping the IC substrate landscape. Rising requirements for advanced ABF and BT substrates are pushing upstream material suppliers to accelerate capacity expansion and quality improvements in key raw materials like silicon wafers and polyimide. Taiwanese and South Korean firms, leveraging their technological edge, are gaining market dominance, erecting new barriers to entry. However, geopolitical tensions are heightening supply chain risks, especially with restricted access to critical equipment and materials, increasing operational costs. Major players are likely to respond with vertical integration, regional sourcing, and strategic alliances with local vendors. Over the next 12 months, the global market will see a structural divergence, with high-end demand growing while low-end capacity faces obsolescence. In the long term, the AI-driven compute demand will propel the industry toward high-density interconnect and silicon interposer technologies, reshaping competitive dynamics.