Ajinomoto Co. plans to invest at least ¥25 billion ($166 million) by 2030 to increase production capacity for semiconductor materials by 50%, as the Japanese food company looks beyond its core business to strengthen revenue.
The Tokyo-based firm will expand production of Ajinomoto Build-up Film (ABF), an insulating material used in advanced graphics processing units for data centers and computer CPUs. The company claims over 95% market share in these segments.
Ajinomoto has already invested ¥25 billion over the past two years to expand facilities at its subsidiary Ajinomoto Fine-Techno in Gunma prefecture and Kawasaki.
President Shigeo Nakamura said the company is considering establishing new production bases, primarily in Japan, according to an interview with Nikkei.
The functional materials division, which includes ABF, accounted for 20% of Ajinomoto’s business profit in fiscal 2024. The company projects a 35% profit increase in this segment to ¥37.2 billion in the current fiscal year.
Nakamura, who became president in February after leading the electronics materials business, expects sales in this division to grow more than 10% annually through 2030.
The semiconductor material leverages Ajinomoto’s amino acid expertise, applying insulating plastic technology to chip substrates – a technological extension of the company’s original food seasoning business.