Major Taiwan-based IC substrate suppliers Unimicron Technology, Nan Ya PCB and Kinsus Interconnect Technology are negotiating with AMD a new form of supply deals under which the suppliers would build production lines dedicated to serving the US client, according to industry sources.
As part of the deals, the sources continued, AMD would have to fund partly the IC substrate suppliers' establishment of additional production lines designed specifically for high-end ABF substrate orders placed by the CPU vendor.
Unimicron, Nan Ya and Kinsus have all declined to comment on the report.
The supply of ABF substrates remains tight. The new form of supply agreements could help AMD counter the ongoing substrate shortage, which is constraining the vendor's processor sales, the sources indicated.
Intel has already struck similar deals with its substrate suppliers, including Ibiden and AT&S, which have agreed to build production lines to fulfill only orders from the CPU giant, the sources noted.
Nvidia and Xilinx may follow suit amid shortages of ABF substrates, the sources said.
In other news, delivery lead times for crucial equipment for making ABF substrates have been extended to 12-18 months, said the sources. It remains to be seen whether the prolonged delivery times at related equipment suppliers, mainly Japan-based ones, may disrupt IC substrate makers' capacity expansion plans.
