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JPMorgan reports major chipmakers are securing long-term substrate capacity with Unimicron amid multi-year supply tightness
Thursday, April 2, 2026 at 01:57 AM
JPMorgan analysts report that major global chipmakers are rushing to sign long-term agreements (LTAs) with Unimicron due to anticipated substrate supply shortages over the next several years. These agreements are expected to cover a significant portion of Unimicron's capacity under terms highly favorable to the manufacturer, reflecting an unprecedented level of supply chain tightness compared to previous industry cycles.
Context
According to a recent analyst report from JPMorgan Chase, major global chipmakers are aggressively securing Long-Term Agreements (LTAs) with Unimicron to guarantee substrate capacity. JPMorgan analyst Albert Hung noted that the eagerness of customers to sign these multi-year contracts—which feature highly favorable financial and flexibility terms for the manufacturer—signals that the industry is entering an unprecedented multi-year supply tightness. In previous peak cycles, such favorable agreements were typically reserved for only a small fraction of the top-tier customer base.
This supply crunch is being driven by the rapid shift toward ultra-high-density AI server architectures and advanced CoWoS packaging, where ABF substrates serve as a critical bottleneck. Market reports from early 2026 indicate that the supply gap is expected to reach 10% by the second half of the year. In response, Unimicron has reportedly boosted its 2026 capital expenditure to NT$34 billion to expand capacity and maintain its lead in the high-end substrate market.
Sources (7)
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