Core Viewpoint - Bank of America projects a compound annual growth rate (CAGR) of 35% for Ibiden's electronic components business over the next five years, driven by surging demand for GPU packaging substrates used in AI chip production [1] Group 1: Company Performance and Projections - Ibiden is expected to significantly increase its production capacity by 60-70% from 2024 to 2026, capitalizing on the historical expansion opportunities in ASICs [1][13] - The EPS forecast for Ibiden has been raised substantially through fiscal year 2028 due to the explosive growth in demand for ABF advanced packaging substrates [1] - Bank of America has upgraded its earnings expectations and 12-month target price for Ibiden, indicating strong confidence in the company's future performance [9] Group 2: Market Demand and Trends - The demand for ABF packaging substrates is closely tied to the production of AI chips, particularly Nvidia's Blackwell series, which is expected to enter a "super growth cycle" in the second half of the year [2][5] - The AI chip market, including GPUs and ASICs, is projected to grow from $126 billion in 2024 to over $400 billion by 2027, and reach at least $650 billion by 2030 [16] - The increasing reliance on ABF substrates for high-performance AI chips is driven by their superior electrical and thermal properties, which are essential for advanced packaging systems [7][8] Group 3: Competitive Landscape - Nvidia's AI GPUs currently account for over 80% of Ibiden's ABF substrate sales, but the share of AI ASICs is expected to approach 20% by 2030 [9][16] - Major cloud computing giants are securing long-term orders with Ibiden and other select Taiwanese packaging manufacturers, indicating strong demand for advanced packaging solutions [9][10] - The rapid growth in AI chip shipments is forcing substrate manufacturers to expand their high-end ABF production capacity ahead of schedule to meet the increasing output [10]