IC substrate maker LG Innotek is bracing for production of ABF-based FCBGA substrates, according to Korean media reports, but industry sources believe it would be a hard job to venture into the segment for the moment.

Makers will have to spend substantial investments and time to enter production of ABF substrates, and may not be able to recoup the investments any time soon, the sources said, but LG Innotek's willingness to venture into the segment speaks volumes about bright sales prospects for ABF substrates that are expected to see supply shortages as a long-term phenomenon.

LG Innotek has been versed in production of slim-type BT substrates and now can deliver stable shipments of BT-based FCCSP and SiP substrates for processing handset SoCs and other HPCs, as well as mmWave AiP substrates, the sources said, adding it has yet to make significant deployments in the large-size ABF substrates.

ABF substrates involve extremely high production difficulty and chipmaking clients differ greatly in their specs requirements for such substrates, which will combine to pose major challenges to production management at any newcomers in the ABF substrate even if they can ready equipment and engineering talent, the sources said.

At the moment, delivery lead times for ABF substrate equipment has been extended to around one year, and related engineering talent remains in short supply, which are current headaches facing players in the segment.