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BofA Raises Price Targets for ABF Substrate Trio Amid AI-Driven Demand
Electronic Technology · Electronic Components · economic_daily · 2026-08-25
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Bank of America has upgraded price targets for ABF substrate leaders as AI server demand tightens supply, while a new ETF offers broader exposure.
What Happened
Supply-Demand Dynamics: Driven by the surge in AI server CPU demand, the ABF substrate market is facing a tightening supply-demand balance, with the supply gap expected to widen to 19% by 2028. As chips become larger and more complex, ABF substrates are becoming essential infrastructure for high-performance computing.
Analyst Upgrades: BofA Securities has raised price targets for Unimicron, Nanya PCB, and Kinsus. Unimicron's target was lifted to NT$1,400 due to aggressive capacity expansion, while Kinsus saw its target raised to NT$1,250, reflecting strong demand from AI CPU and ASIC applications.
Value Creation: Growth in the ABF sector is increasingly driven by 'value-per-unit' rather than just volume. The need for higher circuit density, faster signal transmission, and improved thermal management in AI servers is shifting the industry into a seller's market.
Investment Opportunities: The launch of the CTBC Taiwan-Japan-Korea PCB ETF (009828) provides investors with a diversified way to access the regional AI hardware supply chain. This vehicle covers PCB manufacturing, substrates, and upstream materials, helping to mitigate the risks associated with individual stock volatility.
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