EMC to Enter ABF Substrate Market in Late 2026
New suppliers aim to capture market share as demand for high-performance semiconductor packaging materials continues to surge.
Updated on Oct. 27, 2026 in Semiconductors
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Taiwan-based EMC is projected to begin capturing market share in the Ajinomoto Build-Up Film (ABF) substrate copper-clad laminate (CCL) sector starting in the second half of 2026. This shift follows an industry-wide acceleration of customer efforts to qualify new suppliers outside of Japan, where makers have held over 95% of the market for a decade.
Why it matters
The move is driven by persistent capacity shortages from Japanese suppliers as demand for ABF materials has doubled every one to two years. Diversifying the supply chain for these high-margin components is critical for scaling next-generation semiconductor packaging.
ABF substrate CCL commands an average selling price of $1,500 per sheet, significantly higher than M7-grade ($130) or M8-grade ($180) materials. The product line maintains gross margins above 50%, a key driver for EMC as it expects this business to reach 22% of its revenue by 2028.
The players
EMC
A Taiwan-based materials company that develops copper-clad laminates for the semiconductor industry.
Japanese suppliers
The incumbent manufacturing base that has controlled over 95% of the global supply for ABF substrate materials for more than a decade.
The details
ABF substrate CCL (copper-clad laminate — a foundation material used to support complex integrated circuits) is a specialized material essential for high-performance chip packaging. Because Japanese manufacturers have historically dominated this space, customers are now qualifying alternative suppliers in Taiwan and mainland China to alleviate supply constraints. These new entrants are currently designing specialized production lines to manufacture substrate-grade ultra-thin copper foil, a precise, high-conductive material needed to meet growing density requirements.
Timeline
Customers accelerated the qualification of non-Japanese suppliers in the first half of 2026.
EMC is projected to begin gaining ABF substrate CCL market share in the second half of 2026.
New suppliers may enter the ultra-thin copper foil market between late 2027 and early 2028.
The Tech Race
The entry of new players directly challenges the decade-long dominance of Japanese manufacturers in the ABF supply chain. This diversification is essential to support the projected quadrupling of the total addressable market between 2026 and 2028.
Supply chain diversification for ABF substrates will likely stabilize production costs for high-end semiconductor packaging as new suppliers begin shipping in 2026. This development primarily affects chip manufacturers and packaging facilities that depend on consistent access to these high-margin materials.
The takeaway
The move to diversify high-end substrate manufacturing addresses a critical bottleneck in semiconductor packaging scalability. Watch for upcoming industry reports on supplier qualification completion rates to verify if EMC achieves its 15% revenue contribution target by the end of 2026.
Further reading
For more on the hardware that powers modern computing, visit Semiconductors.
Source note: This article includes information reported by TokenPost.
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