Ajinomoto Says ABF Supply Can Meet AI Chip Demand Through 2030, Plans Capacity Expansion
Ajinomoto holds a 100% global share of ABF, a material with no current alternatives for high-performance chips, making its pricing and capacity decisions a structural factor in AI hardware supply.
Reporting from 1 sources: GIGAZINE.
Ajinomoto CEO Shigeo Nakamura said the company expects to meet demand for its Ajinomoto Build-up Film (ABF), a key semiconductor substrate material, through 2030. The company plans to expand production capacity rather than raise prices, though it may pass through rising solvent costs. A new facility in central Japan is scheduled for 2032 but could open earlier.
Ajinomoto CEO Shigeo Nakamura said the company expects to meet demand for its Ajinomoto Build-up Film (ABF) through 2030, even as AI chip demand accelerates. ABF is an interlayer insulating material used in advanced semiconductor package substrates, and Ajinomoto holds a 100% global share of the market. Investment funds have pushed for price increases, but Nakamura said the company will prioritize customer relationships and expand production capacity instead. A new production site in central Japan is set for 2032, though Nakamura said it may open earlier depending on customer demand. Some organic solvent costs are rising, and Nakamura indicated possible cost pass-through, but he warned that excessive price hikes could spur development of ABF alternatives. No direct replacement for high-performance ABF is currently available.
Synthesized by Yomimono from the 1 cited source below, including Japanese-language reporting where cited, then editorially reviewed before publishing.