Taiwan's IC substrate makers with their strong technological prowess are in pole position to explore business opportunities from China's ongoing homegrown CPU development campaign, according to industry sources.

China is aggressively promoting the adoption of homegrown CPUs in computers first in the government and then the military sector, which will eventually be extended to 5G base stations, servers and commercial-use computers, the sources said.

Unimicron Technology, Nan Ya PCB and Kinsus Interconnect Technology will follow in the footsteps of Taiwan's IC design services and IP vendors to join China's homegrown CPU supply chain, the sources said, adding that Unimicron and Nan Ya have received trial orders for ABF substrates from Chinese CPU developers or inquiries for technology cooperation since 2020.

At the moment, the Taiwanese makers deliver the majority of their shipments of ABF substrates for processing CPUs to clients in the US and Europe, but will gradually ramp up sales to China's CPU developers including Phytium Technology, Hygaon, Loongson and Sunway Technologies, who are set to commercialize production of new CPU offerings for PCs, the sources said.

Chinese CPU designers will have few choices for cooperation partners beyond Taiwan suppliers, the sources stressed, as ABF substrate capacity available at Korean makers is relatively small, Japanese vendors are focusing more on serving US and Europe clients, and Chinese suppliers are now only technologically capable of developing slim BT substrates.

Eyeing huge business opportunities from China's CPU homegrown development, even Taiwan's top PCB maker Zhen Ding Technology is also aggressively making efforts to enter IC substrate segment, the sources said.

By DIGITIMES