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Meta's Muse AI Agent Drives CPU Demand; Analysts See IC Substrate as Next Growth Link
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Meta's new AI Agent, Muse, has sparked market excitement, with analysts predicting it will drive a new wave of AI demand expansion. Unlike previous agents, Muse assigns each user a dedicated cloud virtual machine, enabling persistent background task execution, which has boosted CPU demand and lifted stocks like Arm and Intel. Multiple brokerages, including Jefferies and Pu Yin International Securities, forecast that this CPU demand will cascade to IC substrates, particularly ABF (Ajinomoto Build-up Film) substrates used in server CPUs. Pu Yin notes a near 1:1 mapping between server CPU shipments and ABF substrate demand, with additional upgrades in substrate layers and size. South Korea's Meritz Securities reports Samsung Electro-Mechanics increasing ABF substrate shipments to a North American CPU maker. Taiwan's Jing Shuo Technology reported August revenue up 40.6% year-on-year, driven by high-end ABF substrates, with capacity utilization expected to rise from 85% to 95% by year-end. The company plans to increase ABF monthly capacity by 25% by 2027, focusing on high-end AI substrates.
Source report
This week, Meta's Muse has ignited the AI sector and financial markets, widely regarded as "the next narrative driving AI demand expansion through product and scenario-based applications." At the Meta Connect conference, Muse unsurprisingly took center stage, with nearly all newly announced AI hardware closely tied to this AI Agent. Meta CEO Mark Zuckerberg stated, "The future belongs to everyone," with Muse at the core of this vision. 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 reflected in its rapid user growth and daily active user numbers that have surpassed ChatGPT's performance during the same period.
Unique Features of Muse
Unlike most previous AI Agents, Muse offers a distinctive feature: each user is assigned an independent cloud virtual machine. Even when users close the application, tasks continue to run in the background. This has heightened attention on CPUs, driving stocks such as Arm and Intel to record highs.
Impact on the Supply Chain
The anticipated surge in CPU demand triggered by Muse is spreading upstream in the supply chain. Multiple brokerage firms believe that IC substrates are poised to become an incremental growth segment.
IC substrates, as the direct carriers for chip packaging, serve as the interface between the upper-layer chip die and the lower-layer printed circuit board (PCB).
Analyst Insights
- 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 growth in CPUs and PCBs.
- Puyi 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, in turn, will drive upgrades in packaging volume, product size, and layer count for high-end IC substrates.
In a separate report, the same brokerage pointed out that the impact of AI Agents on IC substrates is not linear but exhibits 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 will proportionally boost ABF substrate demand. On the other hand, the AI Agent era's higher performance requirements for server CPUs will drive continuous substrate specification upgrades, increasing substrate layer counts and surface area.
Supply Chain Developments
According to a report from South 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 on September 23 its August financial results, 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 was 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. While high-layer-count ABF substrates are in tight supply, 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 ABF monthly production capacity by 25% by 2027 compared to the end of 2026, with new capacity focused on high-end AI substrates.
(Source: STAR Market Daily)
Source
东方财富网Eastern
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Meta’s Muse AI agent drives CPU demand surge, stock up 25% in two weeks