Kinsus, Pegatron’s IC substrate subsidiary, is moving ahead with a major capacity push as it prepares for what it sees as a clear, sustained rise in demand. The company has approved additional project-based capital spending of NT$23.5 billion, roughly US$744 million, to fund new equipment purchases for ABF (Ajinomoto build-up film) substrates over the next three years.
ABF substrates are a critical piece of advanced chip packaging, used widely in high-performance processors and other complex semiconductors that require dense, high-speed interconnects. With AI, data center expansion, and next-generation computing continuing to lift packaging requirements, ABF capacity has become a key battleground for the semiconductor supply chain. Kinsus’ newly approved spending signals confidence that demand will remain strong enough to justify adding tools and scaling output.
The investment is structured as project-based capital expenditure, meaning it’s targeted specifically at equipment needed to support ABF substrate production rather than a broad, undefined expansion budget. The plan spans a three-year window, indicating Kinsus is aligning purchases with a longer-term demand outlook instead of reacting to short-term fluctuations.
While the company has not detailed every aspect of the buildout in the provided information, the headline is clear: Kinsus is committing significant resources to strengthen its position in ABF substrates, an increasingly important segment of the semiconductor packaging market. For customers dependent on advanced packaging capacity, moves like this can help ease future bottlenecks and improve supply stability as chip complexity and performance demands continue to climb.
