Ajinomoto Won't Gouge Chipmakers on Critical Substrate Material
Japanese firm pledges enough ABF supply through 2030 and will expand capacity rather than jack up prices.
Ajinomoto just made a promise the entire semiconductor industry wants to hear: no price hikes on ABF, the critical film used in advanced chipmaking substrates.
The company says it can comfortably meet global demand for Ajinomoto Build-up Film through 2030. Instead of squeezing customers during a period of surging AI chip production, it's choosing to build out more capacity. New production facilities are expected to come online by 2032.
ABF is one of those unglamorous but absolutely essential materials in the chip supply chain. It sits inside the substrates that connect advanced processors to circuit boards. Without it, the AI hardware boom hits a wall.
In an industry plagued by supply bottlenecks and opportunistic pricing, Ajinomoto is betting that keeping customers happy now pays off bigger down the road.