Broadcom CEO Warns of Critical Substrate Bottleneck for AI Chips; Toppan Subsidiary Builds Advanced FC-BGA Plant in Singapore

September 13, 2026

Industry Media Global

Overview

Broadcom CEO Hock Tan has identified advanced packaging substrates as a critical new bottleneck for high-end chip production, particularly for demanding AI accelerators and network processors, alongside advanced wafers and high-bandwidth memory. To address this looming supply challenge, Advanced Substrate Technologies (AST), a subsidiary of Japan’s Toppan, is constructing a new Flip-Chip Ball Grid Array (FC-BGA) substrate plant in Singapore, aiming to begin production by late 2026 and stabilize the global supply chain for AI and HPC applications.

In Depth

Background: The Evolving Semiconductor Supply Chain

For decades, the semiconductor industry predominantly focused on front-end miniaturization to drive performance gains. However, with the advent of the AI era, the significance of back-end processes—particularly advanced packaging and its foundational component, the substrate—has been profoundly re-evaluated. Optimal performance and reliable supply of advanced chips now depend critically on the optimization of every segment of the supply chain. Substrates serve as the essential ‘bridge’ connecting complex chips to printed circuit boards (PCBs), making their performance and stable supply a vital lifeline for the accelerating growth of AI and High-Performance Computing (HPC).

Key Findings: Broadcom Flags Substrate Bottleneck, Toppan Subsidiary Responds

Hock Tan, CEO of Broadcom, has issued a stark warning: advanced packaging substrates are now emerging as a critical bottleneck in the production of high-end chips, standing alongside well-known constraints like advanced wafers and High-Bandwidth Memory (HBM). This bottleneck is particularly acute for cutting-edge processors such as high-performance network processors and AI accelerators, which demand sophisticated Flip-Chip Ball Grid Array (FC-BGA) substrates featuring substantially larger surface areas and an exceedingly high number of interconnect layers. These substrates are indispensable for efficiently transmitting massive data volumes and power to and from the chip.

While innovations like chiplet technology and 2.5D/3D packaging have dramatically advanced chip integration, the complexity of designing and manufacturing these corresponding substrates has also surged, resulting in a significant production capacity bottleneck. This substrate shortage is directly impacting the supply of finished high-end chips, constraining the growth of critical technologies.

To directly address this escalating challenge, Advanced Substrate Technologies (AST), a subsidiary of Japan’s Toppan Printing, is making a strategic investment. The company is constructing a new state-of-the-art facility for high-end FC-BGA substrates in Singapore, with production slated to commence by the end of 2026. This investment is deemed crucial for stabilizing the global supply of semiconductors vital for AI and HPC applications.

Strategic Significance and Future Outlook

The establishment of AST’s new Singapore plant is projected to significantly alleviate the existing supply deficit, thereby fortifying the advanced packaging ecosystem, especially within Southeast Asia. The facility is designed to incorporate cutting-edge manufacturing technologies to meet the escalating demand for these critical components.

This strategic move by AST also reflects a broader industry trend toward regionalization and diversification of semiconductor supply chains, aiming to build resilience against future disruptions. Stabilizing the supply of advanced substrates is paramount for sustaining the rapid development and deployment of AI accelerators and HPC systems. It is anticipated that other leading substrate manufacturers will follow suit with similar expansion investments, further enhancing the overall robustness of the global semiconductor supply chain.

However, as substrate technology continues its rapid evolution, continuous innovation and close collaboration across materials science, equipment development, design, and manufacturing stages will be imperative to proactively prevent the emergence of new bottlenecks and ensure the uninterrupted progress of high-performance computing.

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