Unimicron Raises 2026 Capex to NT$34 Billion, Warns Fiberglass Cloth Shortage Could Last All Year
Unimicron Technology, a major global supplier of ABF substrates and printed circuit boards, is benefiting from rising demand for AI servers and high-performance computing, making substrate capacity a key focus of supply-chain expansion. ABF substrates are critical to advanced chip packaging, but tight supplies of fiberglass cloth and other key materials could constrain new capacity and drive up manufacturing costs.
Unimicron sharply raised its 2026 capital spending plan to NT$34 billion, with about 70% earmarked for expanding ABF substrate capacity to meet AI and high-performance computing orders. The company also warned that the fiberglass cloth shortage could persist through the end of 2026 and said it was negotiating price increases with customers. Improved visibility from long-term contracts prompted a foreign brokerage to raise its price target for Unimicron to NT$734.
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The history behind this eventUnimicron Raises Capex to NT$53.7 Billion on AI Substrate Demand
Surging demand for AI GPUs and high-performance computing is increasing the need for advanced ABF substrates, a critical link between high-end processors and semiconductor packaging. Taiwan-based Unimicron Technology is expanding investment to capture that growth, while building capabilities in next-generation packaging substrates as chipmakers seek denser interconnections and greater computing performance.
Unimicron raised its 2026 capital expenditure plan to NT$53.7 billion, with spending focused primarily on ABF substrate capacity and technology. The company is also developing EMIB-T advanced packaging substrates and expects to begin mass production in 2027. It is targeting a 50% first-stage yield as the new process moves toward commercial-scale manufacturing.
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