Nan Ya PCB to ramp up capacity as AI chips drive demand for advanced substrates

Nanya PCB’s capacity expansion signals a strategic response to AI-driven substrate shortages, not just cyclical demand. The surge in advanced packaging—especially for CoWoS and Foveros—demands tighter integration of ABF material science, laser microvia precision, and thermal management, escalating capex intensity and yield risks. Amid U.S. and EU subsidies favoring onshored supply chains, Taiwanese suppliers lacking geopolitical alignment risk client diversification. Competitors like Unimicron and Ibiden will likely accelerate co-investment with AMD or Intel in localized modules. Over the next 18 months, while mid-tier HDI substrates face margin erosion from oversupply, high-end ABF substrates remain bottlenecked. Nanya’s aggressive 2026 capex is a make-or-break move to lock into AI infrastructure’s core tier—miss this window, and re-entry becomes nearly impossible.