News
Bank of America raises estimates for substrate makers as ABF shortage persists through 2028
Thursday, March 26, 2026 at 01:51 AM
Bank of America reports an accelerating price hike and supply shortage in the ABF substrate market that is expected to persist through 2028. Key manufacturers like Unimicron, Ibiden, NYPCB, and Kinsus are expanding capacity to meet high-end AI server demand, particularly for GPUs and the Vera Rubin platform. Ibiden maintains a 70-80% market share in GPU substrates and plans to start production of EMIB-T substrates by FY3/28. Meanwhile, Unimicron and NYPCB are seeing demand overflow and pricing power due to constraints in T-glass cloth supply and increasing substrate complexity with layer counts exceeding 22 layers.
Context
Bank of America has significantly raised price targets for major substrate manufacturers, including Unimicron (to NT$625) and Nan Ya PCB (to NT$680), as the shortage of Ajinomoto Build-up Film (ABF) substrates is now expected to persist through 2028. This structural supply crunch is being driven by the accelerating demand for AI accelerators and the Vera Rubin platform, alongside a critical scarcity of T-glass cloth. Ibiden continues to dominate the market with a 70-80% share in GPU substrates and is preparing for high-margin production of EMIB-T substrates by FY3/28. Analysts note that Unimicron is particularly well-positioned due to its technology leadership and high mix of long-term agreements. During a call on March 25th, Unimicron confirmed a constructive outlook for high-end substrates, noting that T-glass constraints will last at least through 2026. Takashi Enomoto, a research analyst at Bank of America, stated that "demand for T-glass cloth seems likely to grow more than originally expected," highlighting a shift toward ultra-thin materials for leading-edge devices.
Sources (14)
BofA Global Research Forecasts Stronger-than-Expected Economic Growth in 2026 | Press Releases | Newsroom | Bank of AmericaINTEGRATED REPORT 20250000950129-06-002324.txtOfficial Document Announcement - Taiwan Stock Exchange CorporationInfineon CEO says 'physical AI' promises most exciting growth opportunities - Nikkei AsiaExclusive: T-Glass shortage ripples through memory and advanced packaging marketsShortages of crucial chip packaging material threatens AI accelerator supply chains — Nittobo's Fukushima plant is tripling capacity, but it'll take years before market | Tom's HardwareWeekly Market Recap Report from Bank of America Global Research
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