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The growing popularity of large language model (LLM) applications, such as generative AI, is likely to drive demand for high-end CPUs and GPUs, ensuring long-term prospects for ABF substrates, according to industry sources.
Nan Ya PCB, among Taiwan's major ABF substrate suppliers, is mulling to set up a new plant in Southeast Asia, according to company senior vice president LR Lu.
The ABF substrate market segment is expected to regain prosperity in 2024, buoyed by rising demand for AI servers, according to market sources.
South Korean semiconductor equipment supplier Neontech's new product, "TB Cleaning Saw & Sorter," a tool for ABF substrate packaging, has penetrated the Chinese market and won an order of US$6 million. The machine is set to see robust exports in 2H23.
Zhen Ding Technology's revenue fell 7% year on year in the first quarter of 2023, but the company remains optimistic about high-end ABF substrate demand.