As the four major cloud service providers (CSPs) actively invest in self-developed application-specific integrated circuits (ASICs), market forecasts predict a rapid increase in shipments in 2025. However, the integrated circuit substrate supply chain has indicated concerns over potential upstream material shortages following reports that Japan’s leading fiberglass cloth manufacturer Nittobo is facing high-end production capacity constraints. This could potentially hinder future server shipments.
Taiwan continues to dominate the global outsourced semiconductor assembly and test (OSAT) market, but China is catching up quickly. Driven by state-backed chip self-reliance efforts, China’s OSAT industry has expanded at pace, steadily closing the market share gap across the Taiwan Strait. A recent industry-led initiative gaining traction in China is also pushing back against cutthroat pricing that has undermined profitability.