Samsung and SK Hynix seek substrate price cuts for the second half of 2026

Samsung and SK Hynix’s push for substrate price cuts amid a memory supercycle reveals acute cost sensitivity, forcing upstream suppliers to accelerate ABF alternatives or localized resin formulations—potentially delaying advanced packaging yield ramp. South Korea’s pending Critical Materials Self-Reliance Act could trigger supply chain security reviews if substrate makers curtail investment due to margin erosion. Micron and Taiwan, China-based rivals may exploit this by locking capacity with Japanese firms like Ajinomoto and Shinko, gaining asymmetric leverage. Over the next 12–24 months, capital expenditure gaps in substrates will likely spur consolidation, raising M&A risks for smaller players, while leading IDMs increasingly integrate substrate capabilities vertically to hedge against geopolitical fragmentation.