NVIDIA Bets on Glass Substrates: Advanced Packaging Becomes Key Variable for AI Computing Power

NVIDIA is collaborating with German equipment maker SCHMID and other manufacturers to develop glass substrates, hoping that Korean, Japanese, and Taiwanese substrate manufacturers can complete development within two years, with deployment as early as 2028. AI chip competition is shifting from process shrinkage to packaging materials.

I. The 'Floor' of AI Chips Is Becoming the Performance Ceiling

In recent years, AI computing power improvements have relied on advanced process nodes and architecture iterations. But as GPU power consumption continues to climb, HBM stacking layers increase, and the number of chips per package grows, traditional organic substrates are showing their limitations. Insufficient heat resistance and warpage deformation are the two biggest hurdles in high-end AI chip applications.

Glass substrates are seen as the alternative solution. Compared to organic substrates, glass offers superior flatness and rigidity. Glass substrates can improve chip operating speed by approximately 40% while reducing power consumption by nearly half. Their low coefficient of thermal expansion is another core advantage: virtually no deformation at high temperatures, which is crucial for high-performance AI chips with massive heat generation.

More notably, glass has excellent dielectric properties and low signal loss, enabling more stable transmission of ultra-high-speed signals. When substrate sizes are scaled up, deformation is smaller, allowing more chips and HBM to be integrated within a single package. For AI data centers, this means higher interconnect density, lower power consumption, and more controllable signal integrity.

II. NVIDIA's Supply Chain Strategy: Equipment First, Substrates Follow

NVIDIA's approach to glass substrates is not a single-point probe but a simultaneous layout across equipment, materials, substrates, and packaging.

SCHMID disclosed in its H1 earnings call that it is working with core suppliers in the Intel, NVIDIA, and AMD supply chains to jointly develop glass substrate equipment. SCHMID's Chief Strategy Officer noted that technical challenges remain in through-glass via (TGV) metallization, and customer qualification is not yet complete.

In May this year, NVIDIA announced a multi-year strategic partnership with glass substrate leader Corning: NVIDIA will invest up to $2.7 billion in Corning and receive warrants; Corning will build three new advanced manufacturing facilities in the US, expanding domestic optical interconnect capacity tenfold.

III. TGV Metallization and Customer Qualification: Two Hurdles That Must Be Crossed

Glass substrates are not a new concept, but large-scale commercialization has been delayed due to process and qualification challenges.

Through-Glass Via (TGV) is one of the core processes for glass substrates. It requires forming microscopic holes in glass and then metallizing them to achieve vertical interconnection. SCHMID acknowledges that TGV metallization still faces technical difficulties, and customer qualification is not yet complete. This involves adhesion between glass and metal, seed layer deposition, electroplating fill, thermal stress control, and long-term reliability.

NVIDIA's timeline of 'complete development within two years, deployment by 2028' shows both the urgency of industrialization and the reality that mass production won't happen overnight.

IV. Impact on the PCB and Packaging Industry

The logic of AI computing competition is changing. The marginal cost of process shrinkage is getting higher and higher, while packaging's impact on performance, power consumption, and cost is growing. Trends like Chiplet, HBM, CPO, and panel-level packaging are elevating advanced packaging from a 'back-end process' to a core component of system-level innovation.

Huachuang Securities notes that glass core substrates for semiconductor advanced packaging have broad long-term development prospects. As AI/HPC and HBM drive the expansion of high-end advanced packaging, and packaging evolves toward larger sizes, the panel-level packaging trend is expected to further amplify glass's advantages in large format, high flatness, and low warpage.

V. Opportunities for China's Supply Chain

In the glass substrate industry chain, domestic companies are not entirely absent:

• Glass blanks: Localization is still in early stages
• TGV processing and glass substrate fabrication: Some companies have achieved overseas equipment sales and small-batch repeat orders
• Electroplating and metallization: Some companies' TGV additives and equipment have completed delivery testing
• RDL exposure and CMP equipment: Worth watching

This means domestic companies have already found entry points in equipment, additives, and certain processing stages, but more breakthroughs are needed in glass blanks, high-end substrate manufacturing, and customer qualification.

Conclusion

NVIDIA's investment in glass substrates appears to be about substrate material substitution on the surface, but is essentially about AI computing infrastructure competition moving downstream to packaging. From organic substrates to glass substrates, from TGV metallization to customer qualification, advanced packaging is becoming the key variable determining next-generation GPU performance, power consumption, and supply cadence. 2028 may be an observation window, but industrial positioning has already begun.

FAQ

When can glass substrates be mass-produced?

According to NVIDIA's timeline, mass production could begin as early as 2028. However, core processes like TGV metallization still need to complete customer qualification, so large-scale commercialization may take longer.

What impact will glass substrates have on the PCB industry?

Glass substrates will drive substrate manufacturing from traditional PCB etching processes toward semiconductor-grade photolithography, significantly raising equipment investment thresholds and reshaping the supply chain.

Do domestic companies have opportunities in glass substrates?

Yes. Domestic companies have already achieved breakthroughs in TGV via equipment, electroplating additives, and certain processing stages, but still need to catch up in glass blanks and high-end substrate manufacturing.

Will glass substrates completely replace organic substrates?

Not in the short term. Glass substrates primarily target high-end AI chip applications, while mid-to-low-end products will continue to use organic substrates (ABF). Both will coexist for a long time.