Ajinomoto corporate and technological developments

Ajinomoto has experienced significant developments regarding its role in the semiconductor industry and its use of generative AI.

The company has become a vital part of the AI hardware supply chain through its Ajinomoto Build-up Film (ABF), a resin layer used in high-performance processors for companies like Nvidia, Intel, and AMD. Holding over 95% of the ABF market, Ajinomoto reported a 127% increase in quarterly revenue and implemented price increases of approximately 30%. To meet projected supply-demand gaps, the company has committed over 25 billion yen to increase production capacity by 50% by 2030.

Recent reports indicate that Ajinomoto’s electronic materials division now contributes approximately 32% of group profits from 8% of total revenue, driven by demand for AI accelerators. To prioritize core overseas clients, the company may reduce ABF supply to Chinese customers by 30%. This potential tightening has prompted Chinese firms, such as Huazheng New Material, Lotus Holdings, and Hongchang Electronics, to accelerate domestic substitution efforts by developing alternative films like CBF, NBF, and GBF. However, these alternatives face challenges in high-layer count packaging and must undergo reliability testing that can take one to three years. To maintain its market position, Ajinomoto is constructing a third factory in Kani City, Japan, which is expected to be operational by 2032.

Separately, the company issued an apology following a social media controversy involving its ‘Ajinomoto Park’ platform. A post intended to share a recipe used generative AI to modify a photograph, which resulted in the distortion of product packaging. Specifically, the brand name ‘HONDASHI’ was rendered illegible or altered to ‘MONDASHI’. The company clarified that AI was used to adjust brightness and backgrounds rather than creating the image from scratch, and expressed regret for the lack of oversight.