The supply/demand outlook for ABF substrates is expected to remain highly favorable for the next 18-24 months, with industry capacity near full utilization and limited additions planned before H2 2027. Analysts project the supply shortage ratio and gap for ABF to continue expanding, driven by a forecasted 66% CAGR in the AI IC substrate Total Addressable Market from 2025 to 2028E. Samsung Electro-Mechanics (SEMCO) specifically states customer demand for its ABF substrates exceeds capacity by over 50%, expecting full utilization in H2 2026 and projecting its ABF revenue to grow 3.3x from W1.2tn in 2025 to W3.9tn in 2028E.
ABF substrate supply is critically tight, with major suppliers like SEMCO already over 50% overbooked, indicating a binding constraint for AI chip packaging.