Ajinomoto, the Japanese company best known for monosodium glutamate, controls 95% of the global market for Ajinomoto Build-up Film (ABF), an essential insulation material used in AI processors. The company confirmed a price increase of approximately 30% for this material amid a supply shortage expected to persist well into 2027 and possibly beyond. Forecasts indicate a supply-demand gap of 10% in the second half of 2026, which could widen to 42% by 2028. This increase could push substrate costs up by 3 to 6% across the semiconductor industry. Ajinomoto has pledged over 25 billion yen (approximately 150 million dollars) to expand production capacity by 50% by 2030, though the new plant is not expected to come online until around 2032.
Source: Read the original article
