AI Chip Upgrades Ignite Bidding for CoWoS and ABF Capacity

Next-generation AI accelerators require greater computing density, memory bandwidth and package size, increasing their dependence on CoWoS advanced packaging and ABF substrates. CoWoS integrates processors with high-bandwidth memory, while ABF substrates connect the package to the system board and manage signal and power delivery. Capacity in both segments is therefore becoming as critical to AI server shipments as the availability of the chips themselves.

Institutional analysts say the supply-chain bottleneck is shifting toward CoWoS and ABF capacity as demand outpaces available production. Customers are securing output through longer-term reservations and, in some cases, bidding for the remaining slots. The imbalance is expected to give substrate makers greater pricing power and lift utilization, product mix and margin prospects, although the report disclosed no company-specific booking volumes, contract values or capacity expansion dates.