As AI server computing power continues to evolve, with NVIDIA Vera Rubin ramping up production and Google TPU next-generation products accelerating deployment, the substrate area for high-end GPU chips is expanding and layer counts are rising sharply. ABF build-up insulation film, the core interlayer insulating material for FC-BGA packaging substrates, now sees usage per chip multiply several-fold compared to traditional products, triggering explosive industry demand.
ABF film is not a generic resin name but an organic-inorganic composite thermosetting film developed by Ajinomoto. It serves as the critical base for line insulation, fine circuit formation, and laser via processing, directly determining signal transmission, anti-warpage, and dimensional stability performance of premium packaging substrates. The global market is currently highly monopolized by Ajinomoto, which holds over 95% market share in ABF materials for GPU and CPU substrates. Due to supply constraints, the industry is gradually experiencing tightening supply-demand dynamics, and with overseas producers expanding capacity at a slow pace, a rare domestic substitution window has opened for Chinese supply chains.
Domestic companies are tackling the full chain from resin formulation, filler dispersion, precision coating, to joint substrate manufacturer validation, advancing from R&D to production line construction, customer sampling, and small-batch introductions. The industry chain comprises three major segments: build-up insulation film, core inorganic fillers, and IC packaging substrates, all of which benefit simultaneously from rising AI server shipments and the push for supply chain self-reliance.
Where to Begin
In the build-up insulation film substitution track, Huazheng New Materials focuses on CBF build-up insulation film development and industrialization, creating product lines for CPU and GPU computing chips. The company has established a dedicated production line with batch delivery capability and is undergoing customer validation at multiple leading domestic IC substrate manufacturers. By pursuing a differentiated material route that bypasses overseas patent barriers, it ranks among the fastest-advancing domestic ABF-type film players and could achieve scaled adoption first as downstream validation progresses.
Nanya New Material leverages its technical expertise in copper-clad laminates and semiconductor substrates to develop high-performance build-up insulation films, coordinating production line planning through equity participation in related enterprises and achieving process synergy between BT substrates and ABF-type films. The company's extensive experience in high-speed, high-frequency electronic materials provides a strong foundation for transferring resin and filler formulation capabilities from the CCL field to build-up film R&D.
Shengyi Technology, as a leading domestic copper-clad laminate manufacturer, possesses robust resin synthesis and material modification capabilities and is developing build-up film materials suited for advanced packaging. Leveraging long-standing supply chain relationships serving the PCB and semiconductor industries, the company can jointly iterate products with downstream substrate makers, holding deep expertise in resin systems, filler combinations, and film-forming processes.
Lianhua Health entered the ABF-like build-up adhesive film segment through its stake in Niufisi, accelerating product industrialization after completing the equity arrangement. Niufisi's products have already entered customer adoption phases at leading domestic IC substrate and PCB manufacturers, compatible with existing production line processes without requiring major equipment modifications. The company targets breakthroughs in mid-to-low-spec products while continuously iterating toward higher-tier offerings.
Dongcai Technology has cultivated high-end functional films and specialty epoxy resins for years, possessing complete capabilities in resin synthesis and precision coating. It is developing insulation film materials for semiconductor packaging, leveraging its polymer materials R&D platform to tackle low-dielectric and low-CTE formulation challenges, establishing a technical foundation for extending into semiconductor build-up insulation films.
Chenghe Technology focuses on polymer additives and filler modification, conducting ongoing R&D on filler dispersion and resin modification needed for build-up films, providing supporting material solutions for domestic ABF-type films. As domestic build-up film manufacturers advance R&D and production, the company's complementary materials growth potential expands in tandem.
Jizhi Technology brings years of precision coating expertise from the optical sector, where its coating lines and technical know-how can migrate to semiconductor insulation films. By targeting semiconductor functional film materials and leveraging advantages in film uniformity and surface roughness control, the company represents a key technological reserve in the domestic build-up film track.
Zhongjing Electronics has entered the build-up adhesive film business through equity participation, progressing with ABF-like film sample validations while leveraging its own IC substrate manufacturing base. This internal synergy between materials and substrate production facilitates rapid machine testing and performance iteration, shortening product validation cycles.
The Filler Link
The filler segment is critical to ABF film performance, with spherical silica powder serving as the core inorganic filler to regulate thermal expansion coefficient and dielectric properties. Lianrui New Materials, a leader in spherical silica powder, continues developing low-alpha, low-dielectric-loss ultrafine spherical silica products tailored to the stringent fine filler requirements of AI substrate build-up films. As domestic ABF films materialize and AI substrate layer counts rise, per-board filler consumption increases, positioning the company to fully capture downstream volume growth.
Lingway Technology specializes in powder surface modification, offering advantages in surface treatment and dispersion technology for inorganic fillers. By enabling uniform filler dispersion within resin systems and reducing film warpage risk, the company meets the stringent dispersion requirements of build-up insulation films and grows alongside domestic film development efforts.
IC Substrates
IC substrates are the direct purchasers of ABF film. Shennan Circuits, a core player in high-end domestic IC substrates, continues expanding FC-BGA packaging substrate capacity targeting AI computing chips, creating large-scale procurement demand for ABF-type build-up insulation films. As a downstream end-user, the company participates deeply in domestic film machine validation and represents a critical vehicle for domestic material adoption.
Xingsen Technology has positioned itself across ABF, BT, and glass substrate advanced packaging routes with continuously expanding high-end IC substrate capacity and complete substrate design and manufacturing capabilities. While promoting overseas material adoption, the company actively conducts testing and validation of domestic build-up films, positioning itself for rapid supply chain switching once domestic films achieve performance parity, thereby driving upstream material orders.
Honghe Technology focuses on electronic-grade glass fabric, a key raw material for packaging substrate cores. AI high-end substrate demand expansion drives premium electronic fabric demand higher, while accelerated domestic substrate localization simultaneously opens incremental growth space.
Defu Technology targets high-end electronic copper foil, as FC-BGA substrates require substantial volumes of HVLP premium copper foil for fine circuit formation. The trend toward finer AI substrate circuits continuously elevates high-end copper foil demand, with products suited to advanced packaging substrates and deeply benefiting from the AI substrate expansion wave.
Fangbang Technology holds technical advantages in premium copper foil and electromagnetic shielding films, developing supporting copper foil products for semiconductor packaging substrates that match ABF substrate fine-line processing requirements, capitalizing on domestic IC substrate industry expansion and the computing power packaging dividend.
Looking Ahead
AI server capital expenditures continue climbing, with Vera Rubin, next-generation TPUs, and other high-end computing platforms scaling up and driving sustained ABF film demand growth. On the supply side, tight conditions at overseas leaders create a valuable validation window for domestic manufacturers. The entire chain advances along the path of film formulation breakthroughs, filler upgrades, and downstream substrate validation, with core observation points centered on domestic sample testing, customer validation progress, production line launches, and small-batch order wins.
Technologically, the industry is iterating toward lower dielectric loss, thinner films, finer circuits, and lower thermal expansion coefficients. As domestic companies conquer core processes in formulation, filler dispersion, and precision coating, the full chain of build-up insulation films, supporting fillers, and IC substrates faces substantial growth opportunities, with segment leaders set to fully capture the dual benefits of AI computing power expansion and domestic substitution.