Japanese firm behind ubiquitous MSG is ramping up production of key material in semiconductor packaging

• Ajinomoto is best known for MSG but it also makes semiconductor material
• It dominates production of the ABF insulating film used in GPUs and CPUs
• The company plans 50 percent capacity boost with more investment by 2030

Ajinomoto is a Japanese company best known for producing MSG, or monosodium glutamate - the ubiquitous flavor enhancer commonly used in food, especially in Asian cuisine.

As one of the world’s largest MSG manufacturers, the company is often closely associated with the ingredient - the name "Ajinomoto" actually translates to "essence of taste" in Japanese.

Right about now, you’re probably wondering why this is on TechRadar Pro, right? Well, it’s because Ajinomoto is set to massively expand its investment in the semiconductor sector.

Increasing ABF production by 50%

A report from Nikkei Asia claims the Japanese food and biotech company plans to boost production of Ajinomoto Build-up Film (ABF), a key insulating material used in the packaging of advanced CPUs and GPUs, where it helps ensure thermal stability and electrical insulation.

First developed using the company’s expertise in amino acid chemistry (you can read the whole history here), ABF is now essential for high-performance semiconductor substrates and Ajinomoto holds over 95% market share in its category.

Nikkei Asia says Ajinomoto has already spent 25 billion yen over the past two years to expand production at its facilities in Gunma, northwest of Tokyo, and in Kawasaki, but it is now looking to increase ABF production capacity by 50%.

"We will invest the same amount or more by 2030 as demand increases," President Shigeo Nakamura, who took on the role in February 2025, said in an interview with Nikkei Asia.

"We are also exploring establishing new bases," he added, although this expansion is expected to remain within Japan.

Ajinomoto's ramping up of ABF isn’t a surprise, given that Nakamura previously worked in research and played a key role in the development of the company’s electronics materials division.

"We expect sales of electronics materials, mainly ABF, to grow at an annual rate of more than 10% through 2030," Nakamura told the news site.

"We will continue to meet needs by evolving ABF to a more highly functional form that supports high-performance semiconductors in the long term."

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