Among PCB upstream, high-end, substrate, HDI, high-frequency, and high-speed materials are considered the largest markets for future growth. Of these, substrate material is believed to demonstrate the strongest growth momentum. Hence, Taiwanese CCL manufacturers have been vigorously aiming for a cut in this. As they enter via the BT substrate material market and develop products using various methods, they hope to seize business opportunities from a market currently monopolized by Japanese companies.

  According to statistics, shipment volumes of BT substrate materials in 2020 have reached about 21.8 million m2, of which Japanese suppliers (MGC, Showa Denko, Panasonic, Sumitomo Bakelite) account for nearly 80%. The volume of overall shipment of ABF substrate material has reached about 16.7 million m2, of which Ajinomoto seized 96% of the market share alone. Based on this, it is clear that Japanese manufacturers are leading in high-end substrate materials.

  According to players of the trade, BT and FR4 substrate material can be jointly shared in some machines, making capital expenditures lower. However, the process and control parameters can be complicated and precise. Compared to the developments of ABF substrate material by Taiwanese manufacturers, it would be necessary for them to invest in brand-new equipment and establish process capabilities. Besides this, it is difficult for competitors to step into the market within the next 3 years given the current monopoly of ABF substrate materials. Therefore, there is a relative chance of success for Taiwanese manufacturers to penetrate the BT substrate materials market.

  Taiwanese CCL manufacturers include ITEQ, EMC, and NPC as they have begun to invest in research and development. In October 2020, ITEQ announced that it would establish a joint venture with Japan’s MGC to develop substrate materials for non-BT resin systems. EMC has started mass production of SiP module substrate products in 2020 and is expected to mass produce AiP and FC- BGA substrate products in 2022. NPC has already launched an ultra-low thermal expansion and low dielectric substrate materials to penetrate the market.