Rumor

Intel faces supply chain constraints for packaging substrates involving Ibiden and Ajinomoto

Wednesday, March 25, 2026 at 07:02 AM

Intel is reportedly facing a shortage of semiconductor packaging substrates, specifically impacting suppliers like Ibiden and Ajinomoto Build-up Film providers.

Context

As of March 2026, Intel is grappling with severe supply chain constraints for ABF (Ajinomoto Build-up Film) substrates, a critical insulating material required for high-performance packaging. Intel CFO Dave Zinsner recently confirmed that shortages in substrates and memory are expected to persist throughout the year, with Q1 2026 marking the lowest point for available supply. These bottlenecks are primarily driven by the aggressive ramp-up of Intel 18A and Intel 3 process nodes, alongside a surge in demand for AI-capable CPUs and accelerators. Key suppliers Ibiden and Shinko Electric are expanding capacity with new plants in Japan, but full volume is not expected until later in 2026. Ajinomoto Group continues to hold a near-monopoly with over 98% market share of the underlying film technology. This dependency remains a strategic risk for Intel as it scales its foundry business and attempts to meet an inflection point in data center demand driven by AI reinforcement learning and agentic workloads.

Sources (10)

Supply Chain Policy [PDF] 2023-24 Intel Corporate Responsibility Report Intel Reports Fourth-Quarter and Full-Year 2025 Financial Results :: Intel Corporation (INTC)Intel at Morgan Stanley Conference: Strategic Shifts and Challenges By Investing.com Intel's roadmaps examined — 14A, Nova Lake, Diamond Rapids & AI accelerator push | Tom's Hardware CPUs are Back: The Datacenter CPU Landscape in 2026 ABF Ajinomoto Buildup Film Substrate Market Outlook 2026-2032 Securing the Substrate Behind Every Chip: A U.S. Strategy for Ajinomoto Build-Up Film (ABF) | Convergence Analysis

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