News & Events

IC substrate makers see supply stay tight despite cryptomining slowdown

IC substrate makers continue to see their output fall short of demand, despite a recent slowdown in cryptomining demand, according to industry sources.

With cryptomining chip vendors shifting to adopt BT substrates for processing mining ASICs amid severe shortages of ABF substrates, most BT substrate vendors have posted impressive revenue gains in the first half of the year, traditionally an off season, the sources said.

But the recent slowdown in cryptomining demand will not pose significant impact on the vendors, as other application segments entering the peak season will allow them to sustain robust shipments through the end of the year, the sources continued.

IC substrate makers are all poised to start volume production on a larger scale in the second half of the year, in response to strong momentum and visibility for orders from clients including Apple, Qualcomm and MediaTek for handset AP, memory, SiP and AiP modules applications, the sources said. BT substrates will remain short of demand throughout 2021 as Unimicron Technology's fire-damaged plant in northern Taiwan will not resume production until 2022, the sources added.

So far this year, BT substrate makers have raised quotes by 5-15%, and it remains to be seen whether they will enforce a new wave of price hikes in the second half of the year, the sources said.