Meta's AI Agent Muse Sparks CPU Demand, IC Substrate Seen as Next Growth Link

*September 26, Science and Technology Board Daily*** — This week, Meta's Muse has ignited the AI circle and the broader market, widely regarded as "the next narrative driving AI demand expansion through products and scenarios." At the Meta Connect conference, Muse unsurprisingly became the centerpiece: nearly all newly released AI hardware was closely tied to this AI Agent.

Meta CEO Mark Zuckerberg stated, "The future belongs to everyone," and the core of this vision is Muse. He predicted that Muse could eventually become a super-intelligence serving billions of users.

By integrating browser operations, account connections, payments, and background execution, Muse has lowered the barrier for ordinary users to access AI Agents. This is evidenced by the rapid expansion of its user base and daily active users surpassing ChatGPT's performance over the same period.

Unique Architecture: Dedicated Cloud Virtual Machines

Unlike most previous AI Agents, Muse offers a distinctive feature: each user is backed by an independent cloud virtual machine. Even when users close the application, tasks continue to execute in the background. This has heightened attention on CPUs, with stocks such as Arm and Intel hitting record highs.

Upstream Ripple Effects: IC Substrates in Focus

The anticipated surge in CPU demand driven by Muse is spreading further upstream in the supply chain. Multiple brokerage firms believe that IC substrates are poised to become an incremental growth segment.

As the direct carrier for chip packaging, IC substrates serve as the intermediary between the upper-layer chip die and the lower-layer printed circuit board (PCB).

Analyst Perspectives

• Jefferies noted that Muse symbolizes AI Agents accelerating toward mainstream consumer markets. The massive demand for inference, multi-tasking, and computing power will further drive demand for CPUs and PCBs.

• SPDB International Securities highlighted a clear transmission chain: "Expansion of user entry points → increased application penetration → higher task frequency and execution load → growth in CPU and substrate demand." The firm believes that application execution needs will strengthen the investment theme around CPUs and IC substrates. Higher product adoption rates will expand server CPU demand, which, through increased packaging volume, product size, and layer count upgrades, will transmit to high-end IC substrates.

In a separate research report, the same brokerage pointed out that the impact of AI Agents on IC substrates is not linear but features a layer-by-layer amplification effect. On one hand, each CPU requires one FCBGA-type ABF substrate, meaning server CPU shipments have a nearly 1:1 rigid mapping with ABF substrate demand. Thus, a significant increase in CPU shipments proportionally drives ABF substrate demand. On the other hand, the AI Agent era's higher performance requirements for server CPUs will also drive continuous substrate specification upgrades, increasing substrate layer counts and area.

Supply Chain Signals: Samsung电机 and Substrate Suppliers

According to a report from Korea's Meritz Securities, Samsung Electro-Mechanics has signed an MLCC supply agreement with a North American CPU manufacturer. Additionally, shipments of ABF substrates from the company's Vietnam plant to the same CPU manufacturer are also growing.

Strong Financial Performance from IC Substrate Suppliers

Recent earnings reports from IC substrate suppliers confirm robust demand.

• Kinsus Interconnect Technology reported August revenue on September 23, with monthly revenue reaching NT$4.81 billion (approximately RMB 1.02 billion), a year-on-year increase of 40.6%. The primary growth driver came from high-end ABF substrates. The company stated that demand for high-end products remains strong, with current ABF substrate capacity utilization at around 85%, expected to rise to 95% by year-end. The tightest supply is mainly for high-layer-count ABF substrates, while supply and demand for mid-to-low-layer-count products remain relatively balanced.

To meet medium- to long-term demand, Kinsus plans to increase its monthly ABF production capacity by 25% by 2027 compared to the end of 2026, with the new capacity focused on high-end AI substrates.

(Source: Science and Technology Board Daily)