{"id":19998,"date":"2022-04-12T17:11:00","date_gmt":"2022-04-12T21:11:00","guid":{"rendered":"https:\/\/a2globalelectronics.com\/?p=19998"},"modified":"2022-05-05T10:53:23","modified_gmt":"2022-05-05T14:53:23","slug":"abf-substrate-shortages","status":"publish","type":"post","link":"https:\/\/a2globalelectronics.com\/ja\/shortage-mitigation\/abf-substrate-shortages\/","title":{"rendered":"ABF SUBSTRATE SHORTAGES: SEMICONDUCTOR SUPPLY CHAIN CHALLENGES 2022 – PART 2"},"content":{"rendered":"

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The second post in our semiconductor shortage series asks: Will ABF substrate shortages continue to create a chokepoint in the semiconductor supply chain into 2022 and beyond?<\/b><\/h2>\n

Next in our series <\/span>tracking ongoing challenges and changes in the semiconductor industry<\/span><\/a>: substrates.<\/span> Also known as wafers, these units form the base upon which a wide variety of semiconductors are fabricated. Bottlenecks in the substrate supply chain \u2014 particularly Ajinomoto build-up films (ABF) substrate shortages \u2014 are a driving factor of the chip shortages plaguing the industry over the last two years. At the root of this shortage: the sensitive nature of substrate production and steadily increasing demand.<\/span><\/p>\n

Many sources forecast<\/span><\/a> ABF substrate shortages to resolve in 2022. But, in reality, they are still creating a hurdle to production as the complex semiconductor supply chain reacts to shortages. As a result, many chipmakers are taking aggressive steps to resolve supply gaps that slow down their production. Let\u2019s take an in-depth look at what is going on.\u00a0<\/span><\/p>\n

ABF Substrates Shortages: The Critical Layer Underlying Semiconductor Production\u00a0<\/b><\/h2>\n

Discrete manufacturers use a range of semiconductors that rely on laminated packaging and IC substrates with ABF to insulate complex circuits. Ajinomoto Fine-Techno Co exclusively produces ABF substrates, meaning a single entity serves the many companies that package chips.\u00a0<\/span><\/p>\n

Last year saw a slowdown in this narrow supply chain \u2014 but it was only partially related to the single-source ABF manufacturer. 2021 was a \u201cbanner year\u201d for the <\/span>Outsourced Semiconductor Assembly and Test (OSAT) market<\/span><\/a>, as the need for third-party IC packaging and testing providers grew exponentially alongside the demand for chips, particularly in smart devices and <\/span>electric vehicles<\/span><\/a>. For one, trade wars with global suppliers for semiconductor materials in China hindered North American OSAT growth, according to DataM Intelligence 4Market Research data.\u00a0<\/span><\/p>\n

Secondly, <\/span>packaging processes have become increasingly complex<\/span><\/a> as technology nodes shrink and chips become increasingly customized to optimize performance for specific functionalities. Fabless companies use ABF substrate to combine various chips into a smaller form factor. And, increased density comes with increased costs, cycle times, and process control and defect detection.<\/span><\/p>\n

Substrates made with ABF film are produced one layer at a time, and defects can occur at any point in the layering process. Thus <\/span>testing<\/span><\/a> is critical to ensure quality in the substrate manufacturing process. Defects and testing bottlenecks were a hurdle to OSATs in 2021 and will continue to plague the market until better early-detection processes and technologies can increase yield.<\/span><\/p>\n

Increasing Demand for ABF Substrates<\/b><\/h2>\n

In addition to testing and the sensitive nature of the substrate production process, high demand remains a main factor in shortages. Driven by the demands of 5G, artificial intelligence, and electric vehicles, <\/span>ABF demand continues to grow, with a <\/span>CAGR of 20.73% from 2021 to 2028<\/span><\/a>.<\/span>\u00a0<\/span><\/p>\n

In response to this demand, semiconductor manufacturers are working to secure supply and build in-house capacity to <\/span>help with substrate production<\/a>. This response will take a while to catch up with the rapidly expanding demand, however, creating ABF substrate shortages in the near term.\u00a0<\/span><\/p>\n

Recent market updates for in-demand parts<\/b><\/h2>\n

On the market side, the delays in substrate production are visibly impacting several lines. We\u2019ve seen issues with the Spartan 3, XC3S series, FPGA, Spartan 6, XC6S series, FPGA, Spartan 7, XC7S series, FPGA, as well as the Artix 7, XC7A series, FPGA, and the Kintex 7, XC7K series.\u00a0<\/span><\/p>\n

FPGA has lead times of 52-70 weeks or above due to a Xilinx issue with their wafer fab putting the series on shortage. General parts from Maxim Integrated are increasing in price with a lead time of 50-90 weeks. Due to ongoing wafer issues, this lead time could be further stretched.\u00a0<\/span><\/p>\n

 <\/p>\n

To Summarize: <\/b>Now into 2022, shortages of ABF substrates continue to present an outsized hurdle to fixing the global semiconductor shortages. Addressing shortages is critical to the health of the semiconductor supply chain. For more up-to-the-minute market reports, <\/span>contact us<\/span><\/a> or <\/span>subscribe to our market reports<\/span><\/a>.<\/span><\/p>\n

 <\/p>\n

OTHER ARTICLES IN THIS SERIES<\/b><\/p>\n

ASSURING QUALITY DURING THE SEMICONDUCTOR SHORTAGE OF 2022:<\/a> Shortages create strain on the supply chain and normal supply channels aren\u2019t always available to meet the demands. Sourcing the highest quality components is paramount. This post will offer insight into how independent distributors can use exacting standards in line with your organization\u2019s practices.<\/p>\n

SEMICONDUCTOR PACKAGING SHORTAGES: SEMICONDUCTOR SUPPLY CHAIN CHALLENGES 2022 \u2013 PART 3<\/a>: Resolving ongoing chip shortages will require the stabilization of many complex supply chain factors that underlie the final product. These complex factors include the last key step in semiconductor manufacturing: packaging. We\u2019ll address the packaging shortages in more detail, along with possibilities for how this aspect of the semiconductor shortages may resolve.\u00a0<\/span><\/p>\n<\/div>\n<\/div>\n

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The second post in our semiconductor shortage series asks: Will ABF substrate shortages continue to create a chokepoint in the semiconductor supply chain into 2022 and beyond? Next in our series tracking ongoing challenges and changes in the semiconductor industry: substrates. 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