AI Compute Supply Chain: Market Concentrates on HBM and Adv. Packaging
demian_ai · x · 2026-07-16
The AI hardware sector saw an overall correction this week, but HBM (High Bandwidth Memory) and packaging bucked the trend, remaining the sole bright spots. Market capital is highly concentrated in two major physical bottlenecks currently restricted by capacity:
- Testing and Metrology: Driven by demand for AI and HBM wafer-level burn-in testing, related equipment manufacturers are seeing record orders, making this a critical area for expansion ahead of HBM4 mass production.
- ABF Substrates: As the proportion of AI server substrates rises and structural shortages persist, related suppliers continue to raise prices.
In contrast, broader AI infrastructure sectors like power grids, cooling, and networking are declining. This indicates the market isn't bearish on AI infrastructure, but is funneling capital into the packaging layer where capacity is tightest. TSMC's Q2 earnings should be monitored closely for the next signals regarding CoWoS capacity.
Related event: AI Hardware Pulls Back While HBM and Advanced Packaging Rally(3 posts)→
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