The global ajinomoto build-up film (ABF) substrate market has witnessed significant growth in recent years. ABF substrates are extensively used in the electronics industry as a base material for assembling electronic components. These substrates offer exceptional electrical properties and thermal performance, making them ideal for high-performance electronic devices. The ABF substrate market can be segmented based on the type of substrate and its application. In terms of types, there are 4–8-layer ABF substrates and 8–16-layer ABF substrates, each catering to specific needs. The 4–8-layer ABF substrates provide flexibility and reliability, while the 8–16-layer ABF substrates are suitable for more complex electronic devices. Both types of ABF substrates find extensive use in personal computers (PCs), AI chips, and servers and switches. They are integral components in the manufacturing of motherboards, graphics cards, and other PC components. Additionally, they support the computing capabilities of AI chips and ensure connectivity and reliability on servers and switches.
Drivers of the ABF Substrate Market
The increasing demand for electronic devices, such as smartphones, tablets, and laptops, has propelled the need for ABF substrates. These substrates play a vital role in the assembly and interconnection of electronic components in these devices. Additionally, the constant technological advancements and the trend towards miniaturization have further fueled the demand for ABF substrates. As electronic devices become smaller and more compact, thinner and more flexible substrates are required, making ABF substrates an ideal choice.
Moreover, the widespread adoption of AI and IoT technologies has further augmented the demand for ABF substrates. These substrates enable efficient functioning and connectivity for AI chips and IoT devices. With a focus on lightweight and energy-efficient devices, ABF substrates are preferred by manufacturers as they offer lightweight properties and contribute to overall energy efficiency. Besides, the demand for semiconductors is also driving the ABF substrate market.
According to the Semiconductor Industry Association, the global semiconductor sales data for 2022 revealed that annual sales grew from $139 billion in 2001 to $573.5 billion in 2022, representing a remarkable increase of 313%. Additionally, unit sales of semiconductors rose by 290% during the same period, reflecting the growing demand for semiconductors across various industries. A study conducted by the Semiconductor Industry Association (SIA) and the Boston Consulting Group projected a 56% increase in global demand for semiconductor manufacturing capacity by 2030.
Semiconductors are a crucial component in various electronic devices, including smartphones, computers, automotive electronics, and industrial equipment. As the demand for these electronic devices continues to rise, the demand for semiconductors also increases. This, in turn, drives the demand for ABF substrates. Semiconductors require high-quality substrates to ensure reliable performance and functionality. ABF substrates, with their excellent electrical and thermal properties, are well-suited for semiconductor applications. They provide a stable platform for the mounting and interconnection of semiconductor chips, facilitating efficient heat dissipation and signal transmission.
Expansions and Innovations by Major Market Players
The ABF substrate market has significant contributors such as Unimicron Technology Corp., Nan Ya Printed Circuit Board Corporation, Ajinomoto Co., Inc., Samsung Electro-Mechanics (SEMCO), Kyocera, and others. These players assist in the market’s growth with the launch of new products and through collaborations and investments. For instance, in March 2022, Samsung Electro-Mechanics (Semco) announced plans to expand its ABF substrate production capacity at its Busan plant with a total investment of KRW 1.6 trillion ($1.32 billion). The company will allocate approximately KRW 300 billion to the expansion of IC packaging substrates and the construction of production facilities.