News
Unimicron increases 2026 CapEx to record 34 billion TWD for AI substrate expansion
Thursday, February 26, 2026 at 01:20 AM
Unimicron Technology has significantly increased its capital expenditure to a record 34 billion TWD for 2026 to meet surging demand for AI and HPC substrate applications. Approximately 70% of this budget is allocated for ABF substrate capacity expansion and process upgrades. The company expects AI-related revenue to account for over 60% of total revenue by 2026. Key manufacturing expansions include the Guangfu Second Plant, targeting large-scale high-layer substrates with new thermal modules for mass production in late 2027, and the Yangmei Second Plant starting equipment installation in 2028. Additionally, Unimicron is renegotiating prices with customers due to rising costs of raw materials like glass fiber and copper foil.
Context
Unimicron forecasts first-quarter revenue to exceed the fourth quarter, defying typical seasonal trends due to sustained AI-related demand. To protect margins against rising input costs for copper foil and glass fiber, the substrate leader successfully raised prices in the 4th quarter. This pricing power, combined with high utilization rates for ABF substrates, underscores the critical role Unimicron plays in the advanced packaging ecosystem required for next-generation AI accelerators.
The growth surge is tightly linked to the production roadmaps of Nvidia, AMD, and Intel, who rely on these substrates for high-performance processors. As TSMC continues to expand its advanced packaging capacity, the supply chain for AI hardware remains tight, supporting elevated valuations across the sector. For investors, Unimicron’s ability to pass on costs while increasing volume signals a robust recovery, providing a positive tailwind for the broader supply chain including memory partners like Micron.
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