Asahi Kasei Corp. will invest ¥16 billion ($108 million) to expand domestic production facilities for specialized insulating materials used in graphics processing units and other advanced semiconductors, Nikkei reported. The Japanese chemical manufacturer aims to double manufacturing capacity by fiscal 2030.
The expansion targets photosensitive polyimide materials essential for semiconductor packaging in artificial intelligence servers and data centers. While demand has surged alongside the AI boom, supply constraints have created bottlenecks across the industry.
Asahi Kasei’s timing reflects broader scrambling among Japanese materials suppliers to capitalize on semiconductor growth projections. The global semiconductor materials market is forecast to increase by $23.27 billion through 2029, driven primarily by AI applications and edge computing demands.
However, the investment carries risks. The semiconductor materials sector faces volatile pricing cycles and concentrated customer bases. Taiwan Semiconductor Manufacturing Co. and Samsung Electronics represent outsized portions of advanced packaging demand, creating dependency concerns for suppliers like Asahi Kasei.
The company’s PIMEL products have gained traction in recent months, earning recognition from TSMC in 2024. Yet material shortages affecting competitors suggest supply-demand imbalances may persist despite capacity additions.
Asahi Kasei’s expansion joins similar moves by domestic peers as Japan seeks to reclaim influence in global semiconductor supply chains following decades of market share erosion to Asian rivals.
