Morgan Stanley: Glass in Advanced Packaging

> Glass panels possess massive potential in the semiconductor sector as advanced packaging sizes increase. Key advantages include lower costs for large sizes, excellent electrical performance with low signal loss, matched thermal expansion coefficients to reduce warping, and superior mechanical strength.

> Actual application in High-Performance Computing (HPC) is not expected until around 2028/2029.

Innolux $3481.TW:

> Innolux is the most aggressive and currently leads the peer group in glass substrates for advanced packaging. It has completed a Proof of Concept (PoC) for a glass core substrate project with a foundry, with more validations scheduled for the coming quarters.

> Innolux plans to perform the Through-Glass Via (TGV) process on a 510mm x 515mm glass panel before sending it to Ibiden for the substrate process. The primary challenges lie in TGV formation and copper plating using non-traditional display technologies. Initial capital expenditure (Capex) is estimated at NT$20 billion to NT$30 billion.

> Mass production is expected by 2028, potentially contributing around NT$20 billion in revenue (6% of its total revenue).

BOE $000725.SZ:

> BOE aims to complete the entire glass core substrate manufacturing process, which includes both the glass core with TGVs and the build-up layers.

> Research began in 2020, and BOE currently operates a pilot line while conducting validations with domestic and international IC design houses. If successful, BOE plans to invest Rmb5 billion in 2027 to build a 15K/month capacity line (using 510mm x 515mm dimensions), targeting mass production in 2028.

> Morgan Stanley favors BOE for its scale advantages and higher display concentration, expecting the business to contribute Rmb5 billion in revenue by 2028 (5% of total revenue).

AOU $2409.TW:

> AUO's current focus is not on HPC, but rather on Low Earth Orbit (LEO) satellite antennas and Co-Packaged Optics (CPO) modules.

> For LEO satellites, glass will serve as a substrate carrying antenna patterns and RF components, integrating into car sunroofs. For CPO modules, AUO is collaborating with partners like Ennostar and Tyntek to promote Micro LED-based CPO architectures.