AI wave accelerates substrate upgrades as Taiwan captures 35 percent global market

The rapid rise of the artificial intelligence (AI) industry is reshaping the semiconductor supply chain, pushing carrier boards—once viewed as mere supporting players in chip manufacturing—to the forefront of high-end competition. As applications such as large language models, image recognition, and autonomous driving drive continuous demands for higher computing performance, data centers and high-performance computing (HPC) platforms require larger carrier boards with increased layer counts to support high-speed interconnects and thermal management needs. This wave of demand has directly driven carrier board sizes to expand from traditional 100mm dimensions to over 200mm, while layer counts have jumped from 6 layers to 12 or even 18 layers, resulting in simultaneous increases in process minuteness and material complexity.

Recent statistics from the Taiwan Printed Circuit Association (TPCA) show that, driven by the AI and HPC markets, the output value of carrier boards has achieved double-digit year-over-year growth over the past two years. More importantly, Taiwanese companies command a combined global market share of 35.6%, ranking first in the world and demonstrating the domestic industry's distinct advantages in technology research and development, mass production scale, and supply chain integration. Among these, advanced products represented by Ajinomoto Build-up Film (ABF) carrier boards have captured a market share exceeding 40%, making them indispensable key components for global high-end servers and AI accelerators. The low dielectric constant and micro-via design of ABF carrier boards precisely meet the demands for reduced signal latency and power consumption, securing them a prominent position on the procurement lists of major international manufacturers.

Taiwan's success is no accident. Since the 1990s, local printed circuit board manufacturers have invested heavily in materials science and precision manufacturing, forming industrial clusters centered around the Hsinchu Science Park and Central Taiwan Science Park. The government has also assisted companies in transitioning from traditional low-end carrier boards to diversified high-end products such as ABF, FCBGA, and SiP through industrial upgrading programs, R&D subsidies, and talent cultivation. These policies and industry-driven technological accumulations have enabled Taiwan to rapidly adjust production lines, improve yields, and earn the trust of international customers regarding delivery schedules and quality when faced with the explosion in AI demand.

However, as the market scale continues to expand, competitors are also stepping up their investments. Certain manufacturers in mainland China and Southeast Asia are accelerating their deployment of advanced processes in an attempt to achieve breakthroughs in cost and capacity. In response, Taiwanese companies must continue to invest in material innovation, process automation, and supply chain resilience to maintain their technological lead and market advantage. In particular, R&D in high-frequency, high-speed signal transmission and thermal management will become the key to future differentiation.

From a macroeconomic perspective, the upgrading of the carrier board industry has not only elevated Taiwan's position in the global semiconductor value chain but also made substantial contributions to exports. According to trade statistics, export values for carrier board-related products have maintained double-digit growth for three consecutive years, driving related upstream and downstream industries—such as chemical materials, precision equipment, and testing services—to benefit simultaneously, which further creates employment opportunities and enhances industrial added value. If AI applications continue to proliferate in the future, carrier board demand is expected to maintain rapid growth; if Taiwan can solidify its leading advantage, it will play an even more critical role in the global high-end semiconductor supply chain. (Source of facts: Central News Agency)