Unimicron, a major supplier of advanced substrates for AI chips, expects ABF (Ajinomoto Build-up Film) production capacity to expand 30 to 40 percent by 2027 through a new plant, line optimization and conversion of legacy BT process equipment.
The company has begun shipping Co-Packaged Optics (CPO) substrates to multiple clients—a move that positions it in high-bandwidth data transmission, a critical constraint in next-generation AI server architectures. Ultra-high-density GPU designs have created persistent tightness in advanced CoWoS packaging, driving structural demand for ABF substrates.
The core bottleneck: AI chips keep growing larger, introducing warpage and thermal stress that require ABF materials. The industry faces a potential 42 percent ABF shortfall by 2028, which could directly constrain AI chip shipments.
Unimicron reported record quarterly earnings per share of NT$8.45, backed by capital expenditures that have swelled to NT$53.7 billion focused on AI capacity. The company is investing NT$34 billion in 2026 alone for substrate expansion, including the Guangfu Second Plant for high-layer substrates, set for mass production in late 2027. Equipment installation at the Yangmei Second Plant begins in 2028.
In mainland China, Unimicron's Dingxin plant will raise ABF capacity by 20 to 30 percent to meet localized demand.
Unimicron and rival Ibiden are collectively deploying over $5 billion to expand ABF production. Ibiden's Ono plant aims to reach 2.5 times its target capacity by 2028. Nan Ya PCB plans to mass-produce advanced substrates starting in the second half of 2026.
New T-glass production capacity arriving from 2027 onward should gradually ease the ABF shortage and stabilize AI chip supply.
