The market demand for AI GPUs and ASICs continues to surge, and the overall chip supply chain is experiencing a significant impact, leading to the possibility of a long-term shortage of a key component required for smartphone SoCs.
Substrate is the basic material for semiconductor manufacturing and plays an important role in heat conduction and heat dissipation. T-glass (reinforced fiberglass cloth) is often used in wafer substrates. It has the advantages of better thermal stability, flatness and high reliability, and is also conducive to complex wiring.
However, according to the latest foreign investment report from Goldman Sachs, the supply of T-glass used for high-end BT substrates is likely to see a double-digit percentage supply gap in the coming months to quarters. It was also mentioned that Ajinomoto ABF (Ajinomoto Build-Up Film) demand has surged and has almost occupied most of the T-glass supply.
Goldman Sachs pointed out that most T-glass production is currently consumed by ABF. Since relevant customers have stronger procurement capabilities, and high-end applications such as AI GPUs and ASICs use a very high proportion of T-glass in ABF, T-glass allocation is further tilted towards ABF customers.
ABF substrate is usually used in AI GPUs and ASICs. It consists of multi-layer films covered on copper foil to form a high-density circuit structure, thereby increasing the number of pins and performance, and has excellent insulation and mechanical strength. The BT substrate (Bismaleimide Triazine Substrate) used in smartphone SoC is mainly composed of BT resin and T-glass.
Judging from the current situation, due to ABF's high demand for T-glass, the supply of BT substrates is currently tight. Goldman Sachs warned that in the coming months to quarters, T-glass required for BT substrates may face a double-digit percentage shortage.
This will pose a potential risk to the overall smartphone market, especially as the industry is preparing for strong demand in 2026. It is worth noting that Apple is expected to launch six new iPhone models next year, including a foldable model, with shipments estimated to reach 250 million units.
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