(Bloomberg) — IBIDEN, a major supplier of chip packaging substrates used in Nvidia Inc.’s cutting-edge semiconductors, may need to increase the pace of capacity expansion to keep up with demand, its chief executive says. said the CEO. board member.
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Sales of the 112-year-old company’s AI substrates are strong, with customers buying up all of IBIDEN’s products, and CEO Koji Kawashima added that demand is likely to continue at least until next year. .
IBIDEN is building a new circuit board factory in central Japan’s Gifu Prefecture, which is expected to operate at 25% production capacity around the fourth quarter of 2025, reaching 50% by March 2026. But that may not be enough, Kawashima said. The company is discussing when to bring the remaining 50% capacity online.
“Our customers are concerned,” he said in an interview. “We are already being asked about the next investment and the next capacity expansion.”
IBIDEN shares rose as much as 5.5% in Tokyo on Monday, the biggest intraday gain in more than a month.
In addition to Nvidia, IBIDEN’s customers include Intel, Advanced Micro Devices, Samsung Electronics and Taiwan Semiconductor Manufacturing Co., according to data compiled by Bloomberg. Many consult Japanese companies early in product development because the substrates that help transmit signals from semiconductors to circuit boards must be tailored for each chip. To form an AI chip package with components such as memory, the board must be made to withstand the heat of the Nvidia graphics processing unit.
Founded in 1912 as a power company, IBIDEN developed its semiconductor expertise through a partnership with Intel. Mr. Kawashima developed his skills in the early 1990s while waiting in front of Santa Clara Corporation every day for engineers and executives seeking product feedback. At one time, Intel accounted for about 70% to 80% of Ibiden’s revenue from chip packaging substrates. That share fell to about 30% in the fiscal year that ended in March, as the U.S. chipmaker struggles to turn around with the recent firing of CEO Pat Gelsinger.
The dependence on Intel has had a negative impact on Ibiden’s stock price, which has fallen about 40% this year. IBIDEN lowered its profit forecast in October, citing weak demand for components used in general-purpose servers as outpacing growth in AI server-related products. However, Kawashima said he was confident Intel would bounce back, although he noted the importance of expanding business with chipmakers other than Intel.
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