Global Chip Demand Drives Ajinomoto's Expansion Of Semiconductor Packaging Material

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Global Chip Demand Drives Ajinomoto's Expansion of Semiconductor Packaging Material

Tokyo, Japan – October 26, 2023 – Ajinomoto Fine-Techno Co., Inc., a leading manufacturer of specialty chemicals, announced today a significant expansion of its production capacity for ABF substrates, a crucial material in semiconductor packaging. This expansion is a direct response to the soaring global demand for chips, fueled by the burgeoning growth of data centers, artificial intelligence (AI), and the Internet of Things (IoT). The move underscores the critical role of advanced materials in meeting the ever-increasing appetite for semiconductor technology.

The global semiconductor industry is experiencing an unprecedented boom, with demand outstripping supply across various sectors. This shortage has highlighted the need for increased production capacity not just for the chips themselves, but also for the essential materials used in their packaging. Ajinomoto's expansion directly addresses this critical bottleneck.

<h3>ABF Substrates: The Unsung Heroes of Semiconductor Packaging</h3>

ABF (Ajinomoto Build-up Film) substrates are a key component in advanced semiconductor packaging. These high-density substrates are crucial for enabling the complex interconnections required in modern high-performance chips found in everything from smartphones and laptops to high-performance computing servers and automotive electronics. Their exceptional performance characteristics, including high-speed signal transmission and superior thermal management, make them indispensable in today's sophisticated electronics.

Ajinomoto's investment signifies a strategic commitment to meeting the growing market needs for these crucial materials. The expansion plans involve significant capital expenditure and an increase in production capacity at their key manufacturing facilities. This investment reflects Ajinomoto's confidence in the long-term growth of the semiconductor industry and their ability to remain at the forefront of material innovation.

<h3>Meeting the Growing Demands of the Semiconductor Industry</h3>

The expansion is expected to significantly increase Ajinomoto's production capacity for ABF substrates, allowing them to meet the increasing demands from major semiconductor manufacturers worldwide. This strategic move will strengthen their position as a key supplier in the global semiconductor supply chain.

• Increased Production Capacity: The expansion will lead to a substantial increase in the output of ABF substrates, directly addressing the current market shortages.
• Meeting Global Demand: Ajinomoto aims to meet the growing needs of its clients across the globe, ensuring a stable supply of high-quality materials.
• Technological Advancement: The company continues to invest in research and development to further enhance the performance and capabilities of its ABF substrates.

<h3>Ajinomoto's Commitment to Innovation</h3>

This strategic expansion is not just about meeting current demand; it's about anticipating future needs. Ajinomoto is committed to ongoing research and development to improve the performance and efficiency of its ABF substrates, ensuring they remain at the cutting edge of semiconductor packaging technology. This commitment to innovation solidifies their position as a key partner for semiconductor manufacturers striving for technological leadership. The company's focus on sustainability and environmentally friendly manufacturing practices further enhances its appeal to environmentally conscious customers.

The expansion of Ajinomoto's ABF substrate production is a crucial step in addressing the global semiconductor shortage and ensuring the continued advancement of electronic technology. This strategic move highlights the vital role of material innovation in supporting the ever-evolving demands of the digital world. The company's commitment to technological advancement and sustainable practices positions them for continued success in this rapidly growing market.