The AI arms race extends upstream! Reports say Intel, Nvidia, and AMD are prepaying over 100 billions NTD to secure advanced IC substrate production capacity.
NVIDIA, Intel, and AMD have collectively spent $5 billion in advance payments to aggressively secure high-end IC substrates from Taiwan. Driven by "big money for guaranteed orders," the top three Taiwanese substrate manufacturers have invested a record NT$161.2 billion to expand their production capacity. The tech giants' substantial financial commitments to secure supply chains highlight the intense competition and extreme scarcity of core AI materials.
According to Taiwan's Economic Daily News, technology giants NVIDIA, Intel, and AMD have collectively placed advance deposits exceeding NT$100 billion (approximately $5 billion) with high-end IC substrate manufacturers in Taiwan, aiming to secure long-term supply of critical AI supply chain capacity.
Driven by this, Taiwan’s three leading substrate makers—Unimicron, Kinsus, and Nanya PCB—have cumulatively announced factory investment plans totaling NT$161.2 billion this year, setting a new historical record.
Intel CEO Lip-Bu Tan previously stated publicly that AI demand is fueling increased needs for advanced packaging and chips. The supply of upstream IC substrates and materials remains tight, prompting several clients to proactively pay deposits in advance to help Intel secure substrate supplies and capacity. Based on this, analysts estimate that Intel’s long-term pre-purchase of substrate capacity amounts to around $3 billion.
AMD had previously announced an investment of billions of US dollars in Taiwan, widely interpreted within the industry as an initiative to lock in supply chain capacity. Of this, investment related to substrates is estimated at roughly $1 billion. NVIDIA has also announced large-scale capacity expansion plans in collaboration with several key supply chain partners. External estimates suggest NVIDIA's investment in Taiwanese substrate companies is likewise around $1 billion, with further increases possible.
Unimicron: Industry-Leading Capital Expenditure, Hundreds of Millions Spent on Acquisitions
According to the reports above, Unimicron ranks first among substrate manufacturers for capital expenditure this year. The company’s Board of Directors recently resolved to increase this year’s capital spending by NT$19.7 billion, bringing the full-year total to NT$53.7 billion. Simultaneously, the company placed large orders for long-lead-time equipment, with procurement amounts further increased by NT$17.6 billion.
In terms of land and facilities, Unimicron announced at the end of September the acquisition of the Bridgestone Hsinchu facility in Taiwan for about NT$10.08 billion to meet future customer demand for advanced substrate capacity expansion. According to the company’s announcement, the purchase of land is part of a mid- and long-term operational development strategy, aimed at overall production allocation and capacity planning.
Kinsus: Transitioning to High-End Substrates, Over NT$40 Billion Budgeted for Three-Year Expansion
In recent years, Kinsus has gradually moved away from traditional PCB manufacturing and focused resources on transforming into a high-end substrate business. Its Board of Directors has approved a capital expenditure of NT$23.5 billion to acquire the equipment needed for expanding ABF substrate capacity over the next three years. Of this, NT$8 billion is planned for 2026, with NT$6 billion dedicated specifically to ABF substrate investment.
Additionally, Kinsus has earmarked a further special project capital budget of NT$19.6 billion, further strengthening expansion momentum. The total expansion budget exceeds NT$40 billion.
Nanya PCB: Building a Smart Factory, Single Investment Nears NT$50 Billion
Nanya PCB’s Board of Directors has approved an additional capital expenditure for constructing a smart factory focused on large-size, multi-layer high-end substrates, with an estimated investment of NT$46.8 billion—the largest single investment among the three companies.
AI Infrastructure Arms Race Expands Upstream
The combined investment from the three technology giants into Taiwan’s substrate industry is estimated at $5 billion (about NT$162.9 billion), reflecting the deep reliance of AI infrastructure development on upstream key materials and packaging substrates. As the core intermediary component connecting chips and circuit boards, substrate supply bottlenecks have begun to directly impact the overall AI supply chain’s capacity release rhythm.
The model of clients securing capacity with large advance payments not only provides visibility to support large-scale capital spending by Taiwan’s substrate manufacturers but also illustrates that technology giants now prioritize supply chain security to the extent of proactively locking in resources. This year, investment announcements from major Taiwanese substrate companies have reached a record high of NT$161.2 billion, highlighting a long-term optimistic outlook for AI-related substrate demand.
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