Ajinomoto, better known for its seasonings, oils and food products, may add a new manufacturing base to produce more of a specialized material used for semiconductors, CEO Taro Fujie said.
The company may invest more than its planned ¥25 billion ($186 million) if necessary, and will make a decision on any new factory within a few years, Fujie said in an interview. Ajinomoto Build-Up Film, which helps to connect chips to circuit boards, was developed in the 1970s using the food company’s expertise in resins and amino-acid-chemistry.
Ajinomoto is the dominant supplier and shortages of ABF contributed to the chip crunch experienced in the early days of the pandemic. Demand for semiconductors has been steady, helping to boost the company’s stock by 21% this year to record highs and outpace the broader Topix Index. Analysts are projecting, on average, a 19% jump in revenue for the fiscal year through March when the company reports results on May 11.