An ABF panel price increase wave is coming! Ajinomoto plans to raise prices by 30%; Taiwan-based panel giants set a record first with April revenue

As demand for AI servers and high-end chips continues to heat up, the ABF substrate industry is drawing significant attention. Ajinomoto, Japan’s largest ABF buildup thin-film supplier, is reportedly considering raising its pricing by at least 30%, which could push overall backplane/substrate prices up by 3% to 6%. However, Taiwan’s “three major PCB/substrate makers”—Unimicron (3037), Compeq (3189), and Nan Ya PCB (8046)—already saw their April revenue hit new highs ahead of schedule.

Stronger ABF substrate pricing may extend supply-demand gaps to the end of 2027

The Commercial Times reports that the structure of AI server demand has shifted from short-term procurement to longer-term planning, and is expected to drive an ABF substrate supply-demand shortfall that extends to the end of 2027. Starting from the second quarter of 2026, average ABF substrate prices are generally expected to be raised by 5% to 10%, and in some spot markets, price increases could be more than 30%.

On long-term contracts, clients are also increasingly showing willingness to add capacity through additional subsidies, fully reflecting the market’s high level of concern for stable supply of advanced substrates. With Taiwan-based substrate makers’ capacity expected to near full load by the end of this year, industry broadly expects that pricing will climb further in the second half, and visibility for overall industry conditions will continue to improve.

Ajinomoto plans to raise thin-film prices; cost pass-through will affect the entire industrial chain

In this ABF substrate price-hike cycle, one key variable comes from the upstream materials sector. The market has indicated that Ajinomoto (TYO: 2802) is considering raising ABF buildup thin-film prices by at least 30%. Based on cost structure estimates for ABF substrates used for AI GPUs and ASICs, if the thin-film price increase turns out to be true, substrate manufacturers would have an additional 3% to 6% room to raise overall pricing.

Industry expects that in the face of rising material costs, substrate makers will inevitably gradually pass costs on to end customers, further strengthening the durability of the upward pricing trend.

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Taiwan’s ABF trio posts record April revenue; benefit levels and timing vary by company

Driven by a rebound in business conditions, Taiwan’s ABF substrate trio delivered impressive April revenue performance. Unimicron Electronics (3037) led the three with NT$13.93B, up 27.64% year over year; Nan Ya Circuit and Electronics (8046) posted NT$4.45B, up 26.75% year over year; and Compeq (3189) reported NT$4.07B, up as much as 39.47% year over year.

Market analysis says the future timing and magnitude of benefits for the three companies will differ. Nan Ya is expected to benefit most directly because it has a higher proportion of BT substrates and non-long-term-contract ABF substrates, giving it greater flexibility in this price-hike cycle. Compeq is also expected to keep expanding its share in the advanced ABF market, as AI application penetration continues to rise and its subsidiary Jingwei operates steadily. Unimicron currently has about 70% of ABF shipments covered by long-term contracts, limiting short-term pricing flexibility. Still, the market expects that as CPO (co-packaged optics) technology is introduced and demand for next-generation AI servers ramps up, once long-term contracts begin to expire and are renegotiated, Unimicron’s price-hike dividend will become visible quarter by quarter.

Korean makers’ moves and customer affordability determine whether ABF price increases can be realized

Whether Taiwan makers can push price increases through smoothly depends on two major external factors. The first is the follow-through willingness of Korean substrate makers. If Korean firms such as Samsung Electro-Mechanics (Semco) and LG Innotek also raise their quotes in parallel, Taiwan makers’ pricing room will be more secure. Conversely, if Korean makers choose to keep prices to capture market share, some customers may consider switching orders, putting pressure on the achievable magnitude of the price hikes.

The second factor is the affordability of end-market AI chip customers. Ultimately, whether this round of substrate price increases will be realized hinges on whether major AI chip vendors such as Nvidia, Broadcom, and Marvell are willing to sign on. If end demand for AI chips remains strong, substrate makers’ success rate in passing through costs is relatively higher. If demand fluctuates, the room for price negotiations between both sides will narrow accordingly.

This article says the ABF substrate price-hike wave is coming! Ajinomoto plans to raise prices by 30%, and Taiwan’s three leading substrate makers’ April revenue is first to hit new highs—first appeared on Chain News ABMedia.