Ibiden, a key supplier of chip substrates for NVIDIA's (NVDA, Financial) advanced semiconductors, is considering accelerating its capacity expansion to meet growing demand. CEO Koji Kawashima noted that AI substrate sales are strong, with clients snapping up the entire production, and this demand is expected to continue into the next year. Ibiden is constructing a new substrate factory in Gifu, Japan, set to start operations in late 2025, initially at 25% capacity, reaching 50% by March 2026. However, this may not suffice, and discussions are ongoing to bring the remaining capacity online.
Ibiden's client list includes Intel (INTC), Super Micro Computer (SMCI), Samsung, TSMC, and NVIDIA. Despite Intel's past dominance, accounting for up to 80% of Ibiden's substrate revenue, its share dropped to about 30% recently, impacting Ibiden's stock, which fell around 40% this year. Nevertheless, Kawashima remains optimistic about Intel's recovery.
