| dc.description.abstract | In recent years, with the rapid development and demand growth of high-end IC chips such as generative AI, graphics GPUs, 5G networking, high-performance computing (HPC), and autonomous driving vehicles, the importance of advanced packaging and ABF (Ajinomoto Build-up Film) substrates has become increasingly pronounced. As the functionalities of high-end IC chips continue to advance, the unique properties and advantages of ABF substrates have become evident, securing a dominant position in the field of high-end IC chip products. Given the significant market demand potential for new applications in high-speed computing and generative AI, the ABF substrate market is presented with unprecedented opportunities for rapid growth, playing a crucial role within the overall advanced semiconductor chip industry chain.
This thesis employs the Structure-Conduct-Performance (S-C-P) analytical framework of industrial economics theory to examine the fundamental conditions, government policies, market structure, firm behavior, and industry performance of the global ABF substrate industry, analyzing its current state and future trends.
The research findings reveal that the market structure of the ABF substrate industry is characterized by a high degree of seller concentration, primarily centered in Taiwan, Japan, and South Korea, indicating a highly oligopolistic market dominated by a few leading manufacturers. Regarding barriers to entry, the industry is recognized for its capital and technology-intensive nature, embodying significant economies of scale barriers, posing substantial challenges for new entrants. In terms of product differentiation, ABF substrates exhibit considerable vertical differentiation, leading to a more concentrated market structure with notable product differences among manufacturers.
In terms of firm behavior, the pricing strategies of substrate manufacturers are largely based on their overall evaluation by end clients and the general state of the market economy. In a supply-constrained market scenario, manufacturers have considerable flexibility and leeway in their pricing strategies. Regarding competitive strategies, to stand out in the global substrate competition, manufacturers must continuously optimize and innovate across five core competitive indicators： quality, cost, delivery, technology, and service (QCDTS), thereby meeting the high standards of end clients and securing a dominant position in the realm of high-end products. In innovation and R&D, focusing on high-end ABF substrates for high-speed computing applications, innovative advanced packaging technologies such as Chiplet heterogeneous integration and TSMC′s CoWoS 3D IC stacking are the trends of the future, driving ABF substrates towards larger areas, higher layer counts, and higher circuit densities, increasing the overall manufacturing difficulty and threshold. Regarding conglomeratization and alliances, vertical integration and diversification investments are pursued, along with alliances with key customers, to achieve higher operational efficiencies and capture niche markets.
From a performance perspective, during the 2015-2018 period, the ABF substrate industry faced a downturn due to oversupply and low demand, leading to underutilized capacity and challenging profitability, reflected in poor EPS and key performance indicators. Post-2019, the industry experienced explosive growth due to the increased application of high-speed computing products and the demand surge brought by the COVID-19 pandemic, resulting in a booming market with rising demand and prices, significantly improving manufacturers′ EPS and performance metrics. The overall operational performance of the ABF substrate industry is not only related to the managerial strategies and decisions but also closely linked to the cyclical fortunes of the industry and the shifting application domains brought about by rapid technological advancements. The application of new technologies will have a disruptive and transformative impact on the industry. | en_US |