ABF substrate suppliers may start to lower prices in Y2023 led by Taiwanese suppliers.
December 30, 2022
Key Takeaways:
- ABF substrate suppliers in Taiwan, including Unimicron, Nanya PCB, and Kinsus, may have received order adjustments since 4Q22 due to a significant wafer input cut.
- This could lead to fabless companies making further adjustments to upstream supply chains.
- ABF substrates are crucial materials to the semiconductor supply chain, acting as high-speed interfaces between HPC processors and PCBs, and have become an indispensable component in a wide variety of devices.
- Fabless companies typically enter long-term agreements with suppliers, but prices may now be lowered by 7-10% for RFQ in 2024-2025 due to easing supplies.
- The ABF substrate technology may continue to improve, but supply crunch may be less likely to occur as supply-demand of consumer electronics become balanced, mediating ASP growth down the line.
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Authors
Lucy Chen
Lucy Chen, Vice President at Isaiah Research, has been working 25+ years in semiconductor industry. Focus on semiconductor engineering and supply chain research. Master in Application Chemistry, NCTU, Taiwan Currently as the Vice President at Isaiah Research and lead semiconductor research team to work on the supply chain analysis from IC design and IDM(Qualcomm, MediaTek, Intel, etc) to foundries(TSMC, Samsung, UMC, GlobalFoundries, SMIC) and OSATs(ASE,SPIL). Business development and customer management including raw materials and equipment suppliers, top tier foundries and smartphone brands. Used to work as the Engineering Director at Lam Research for 15+ years and Director of Technology & Marketing at SEZ Group. Focus on process engineering, product strategies planning, supply chain and customer management including foundries and memory.
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