EB SECURITIES: The glass substrate industry is gradually moving towards commercialization, and the demand for materials such as PSPI and other PID materials is expected to open up.

EB SECURITIES released a research report stating that, as computing power chips evolve towards larger sizes and higher integration, the performance of traditional organic packaging substrates has gradually approached physical limits. Compared to organic materials, glass substrates offer ultra-low warpage, as well as superior thermal and mechanical stability, allowing for larger package sizes and enhancing wiring design rules by approximately an order of magnitude (about 10 times the interconnect density), thus supporting the continued stacking of transistors within a single package and the continuation of Moore's Law. In terms of market space, SEMI predicts that glass substrates will enter a limited production phase around 2028, with a market scale CAGR of approximately 67.2% during the period from 2028 to 2040, corresponding to a market space of about $13 billion by 2040. EB SECURITIES' main viewpoints are as follows: Glass substrates are expected to become the next generation core carrier for advanced packaging of AI computing power chips, as the industry gradually moves towards commercialization. As computing power chips evolve towards larger sizes and higher integration, the performance of traditional organic packaging substrates has gradually approached physical limits. According to Intel, glass substrates have ultra-low warpage and superior thermal and mechanical stability compared to organic materials, supporting larger package sizes and enhancing wiring design rules by approximately an order of magnitude (about 10 times the interconnect density), which allows for the continued stacking of transistors within a single package, extending Moore's Law. Internationally, Intel has invested approximately $1 billion in research and development over nearly a decade and plans to deliver a complete glass substrate solution in the latter half of this decade (around 2026-2030). Domestically, BOE began pre-research on glass carrier substrates in 2020 and has achieved full automation of the glass packaging substrate experimental line by the first half of 2026, with a designed capacity of 1,000 pieces per month; concurrently, the company completed sample development and delivery of large-size, high-layer glass carrier substrates by 2025. In terms of market space, SEMI estimates that glass substrates will enter a limited production phase around 2028, with a market scale CAGR of approximately 67.2% from 2028 to 2040, corresponding to a market space of about $13 billion by 2040. PID materials are becoming the key dielectric materials for high-density interconnections in glass substrates, with PSPI being one of the mainstream categories. In the redistribution layer (RDL) stage of glass substrates, the dielectric layer must possess both fine patterning capabilities and excellent electrical and thermal properties. As high-density interconnections are promoted, the requirements for line width/spacing (L/S) of dielectric layer patterns continue to rise, which is expected to increase the application of photosensitive dielectric materials (PID). PSPI is a typical PID material that retains the heat resistance, insulation, high mechanical strength, and low dielectric characteristics of polyimide while also possessing photolithography patterning capabilities, suitable for RDL redistribution layers and as buffer/passivation layers for IC chips. Internationally, several overseas companies have made significant research and development progress in PID materials for glass substrates: Toray will release photodefinable PI films in December 2025, which allow simultaneous RDL microprocessing and TGV resin filling, thereby significantly shortening the process flow and reducing costs, with mass production planned for the fiscal year starting in April 2026; Fujifilm has released the LTC 9300 and Durimide series of photo-imageable PIs, also aimed at RDL and buffer layers for advanced packaging. In addition to PI materials, DuPonts BCB (Cyclotene?) material, with its low dielectric constant, low loss, and low moisture absorption properties, is also applicable to advanced packaging RDL. Domestic companies have achieved breakthroughs in the commercial production of PSPI materials for displays and are rapidly extending into advanced semiconductor packaging. Hubei Dinglong's PSPI products have achieved the world's first commercial mass production on the G8.6 AMOLED production line, while continuously advancing the research and development and sample verification of fluorine-free PSPI and black pixel definition layer materials; in the semiconductor packaging field, the company has laid out 8 PI products, 3 of which have received orders from multiple customers. Jilin Oled Material Tech is leveraging its accumulated PSPI expertise and mature display material industrialization foundation to specifically enter the glass carrier substrate material sector, focusing on independent development and promoting the domestic replacement of ultra-thin low-stress dielectric films, while also customizing high-performance PSPI materials for packaging applications. Xi'an Manareco New Materials' PSPI monomer business has established deep strategic cooperation with leading Japanese companies and is investing 75 million yuan to build a PSPI material industrialization project for packaging in Pucheng, expected to be completed in the second quarter of 2027. Beijing Bayi Space Lcd Technology Co., Ltd.'s PSPI production line has been completed, with pilot development of PSPI photoresists for advanced packaging already finished, laying the groundwork for the expansion of the company's semiconductor materials business. Risk Warning: Downstream demand may not meet expectations, product development risks, delays in customer adoption progress, and intensified industry competition.