Ajinomoto to Secure ABF Supply Capacity for AI Chip Demand Until 2030, Prioritizing Production Expansion Over Price Hikes

June 20, 2026

GIGAZINE Japan

Overview

Ajinomoto announced its capability to meet the surging demand for Ajinomoto Build-Up Film (ABF), a critical interlayer dielectric for advanced semiconductor packaging, until 2030, driven by the exponential growth in AI chip consumption. Instead of raising prices, the company plans to expand its production capacity significantly. ABF remains essential for high-density integration of chips and PCBs, with its complementary use alongside alternative materials like glass anticipated.

In Depth

Key Findings

Ajinomoto announced on June 15, 2026, its confidence in meeting the escalating demand for Ajinomoto Build-Up Film (ABF), a crucial interlayer insulating material for advanced semiconductor packaging substrates, until 2030. Despite the explosive growth in AI chip demand, the company is committed to expanding production capacity rather than resorting to price increases to manage supply.

Technical Details

ABF is a laminated material integral to semiconductor package substrates, providing electrical insulation between multiple circuit layers while enabling the formation of intricate fine wiring. For high-integration, high-functionality semiconductors like AI chips, ABF’s superior electrical properties, including low dielectric constant and low dissipation factor, along with excellent thermal stability, are critical for high-speed signal transmission and effective thermal management. These properties are paramount for achieving high-density integration between the chip and the printed circuit board. Ajinomoto has meticulously optimized its manufacturing process to ensure both quality and production efficiency. While new materials like glass are being explored for next-generation semiconductor substrates, ABF is expected to complement these innovations, further enhancing its functionality and market value when used in conjunction with them.

Background & Context

The rapid advancement of generative AI technologies has fueled an unprecedented surge in demand for high-performance AI semiconductors in data centers and edge devices. Semiconductor manufacturers are increasingly adopting chiplet technology and high-density packaging techniques to integrate more transistors and enable faster data processing. ABF is a foundational material that maximizes the performance of these advanced packaging technologies, making its stable supply vital for the growth of the entire semiconductor industry. The importance of supply chain stability has been underscored by recent global chip shortages, making Ajinomoto’s commitment to supply continuity particularly significant for the industry.

Strategic Significance & Outlook

Ajinomoto’s strategy of expanding production capacity while maintaining prices positions it competitively against rivals who might opt for price hikes. This commitment to stable supply until 2030 offers significant assurance to major semiconductor clients, fostering stronger, long-term partnerships. As AI technology continues to evolve, the demand for high-performance materials like ABF is projected to grow continuously. Ajinomoto aims to sustain its leadership in this critical market through ongoing technological innovation and robust supply chain reinforcement. The company’s strategic approach is expected to contribute significantly to the overall stability and advancement of the global semiconductor industry, supporting the broader digital transformation.

Source: https://gigazine.net/gsc_news/en/20260615-ajinomoto-abf-product-more/

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