9% CAGR 2024-29 for advanced substrate market, says Yole

Competition to commercialise glass core substrates is intensifying as more players enter the field.

Absolics, Intel, and Samsung are the key players, backed by a vast network of equipment, materials, and glass suppliers within their sub-supply chains.

The advanced IC substrate market, currently dominated by organic core substrates, saw revenue decline in 2023, marking a year of correction.

However, starting in 2024, the industry is poised for growth largely driven by the rising demand for FC BGA substrates for FCBGA and 2.5D/3D advanced packages, fueled by AI accelerators for HPC and data centres, 5G, AI PC CPU s, XPUs, and automotive sectors.

The competition to commercialise glass core substrates is heating up, with numerous players entering the fray, striving to lead in GCS -based product commercialisation.

“The core of advanced IC substrate manufacturing is concentrated in three Asian countries,” says Yole’s Bilal Hachemi, “however, other nations, notably China, have been making significant strides with ongoing investments since the 2021 shortage, positioning themselves to capture future market share, particularly in high-end substrates like FCBGA.”

In the U.S., domestic substrate suppliers lag the market leaders, but a government program has been established to boost U.S. substrate manufacturing.

Despite efforts to diversify supply chains, strengthen local semiconductor ecosystems, and meet the demands of AI products, advanced IC substrate production will remain centered in Asia.

Increased investment in expansion and new plants for high-end substrates, driven by local government incentives, especially in the U.S. and China, is expected to further this trend.

New entrants have emerged in the advanced substrates market to serve AI industry leaders.

For example, Zhen Ding is committing over $1 billion by 2027 to become a global supplier of high-end substrates. Additionally, new companies are challenging Ajinomoto’s dominance in ABF products.