The AICS market reached $14.2 billion in 2024growing 1% y-o-y; GCS is coming closer to commercialisation with strategic investments and pilot lines set up globally; SLP shipments reached 392 million units in 2024, with smartphone applications dominating; ED remains a niche but strategic technology for AI chips in terms of power delivery and signal integrity.
Global capacity expansion is driven by AI/HPC trends, CHIPS Act incentives, and Chinese investments.
In 2024, the organic AICS market rebounded modestly to $14.2 billion, growing 1% YoY. Build-up IC substrates alone constituted a dominant market share that continues to grow.
There is sustained demand for larger, complex, high-ASP substrates capable of supporting generative AI, data center, and advanced package requirements, including finer interconnects, higher yield, and controlled lead times.
The GCS market remains nascent, but strategic investments across the U.S., Korea, and China are laying the foundation for future commercialisation.
Yole forecasts a multi-hundred million $ market value by 2030, driven mainly by HPC, AI, and telecommunications. Flagship initiatives like Absolics’ Georgia-based fab and a growing number of pilot lines reflect the long-term commitment to GCS technology by industry giants.
SLP solutions are projected to grow steadily to more than $5 billion by 2030, with a 4.5% CAGR. Dominated by smartphone adoption, SLPs bridge the gap between traditional PCBs and IC substrates, offering a scalable platform for AR/VR, wearables, and flagship mobile devices.
Despite its modest market size, ED technology remains a strategic enabler, especially in meeting power, thermal, and miniaturisation requirements in automotive and industrial applications. Leading players, such as ASE, AT&S, Würth Elektronik, and Texas Instruments, are exploring diverse ED integration models, though a fragmented supply chain and high cost still hinder rapid expansion.
“The 2024–2025 period is marked by significant capacity investments across the global IC substrate landscape. Organic AICS manufacturing remains heavily concentrated in Asia, with dominant suppliers such as Unimicron, Ibiden, Shinko, Semco, and AT&S”, says Yole’s Bilal Hachemi.
In response to geopolitical risks and the 2021 substrate shortage, China is investing heavily, and new players like Zhen Ding are committing up to $1 billion in capacity expansion.
Meanwhile, U.S. and European players are beginning to respond with support from government programs such as the CHIPS Act, though they currently lag far behind in production capacity.
Importantly, the materials supply chain is diversifying, as new entrants challenge the dominance of build-up materials in the market, potentially easing bottlenecks and enhancing resilience.
