Ajinomoto (2802) Investor update summary

Growth strategy and market environment

• Focus on ICT sector growth, driven by AI and increasing data volumes, with ABF as a core product.

• ABF maintains over 95% market share, leveraging early-stage customer collaboration and high-speed development.

• Demand for high-performance substrates is rising due to AI, HPC, and advanced packaging technologies, with logic IC market forecast to grow by 37% in 2026 and 27% in 2027.

• Product mix is shifting toward higher value-added ABF, improving profit margins from 30% in FY2018 to over 50% in FY2025.

• Expansion into peripheral materials (adhesives, magnetic materials) and next-generation packaging, including co-packaged optics and optical waveguides, to support future growth.

Production capacity and supply chain

• Asset-light model: varnish production in-house, other processes outsourced for flexibility and efficiency.

• Gunma Plant began operations in 2025, featuring automation and IoT systems, with phased investments to expand capacity through 2030.

• New plant planned in Gifu Prefecture to further increase supply capacity beyond 2030, with ¥25 billion investment planned between 2023 and 2030.

• Current production can be increased by moving from single-shift to multi-shift operations.

• Decentralized and complementary production structure ensures stable supply, risk mitigation, and global support with sites in Japan, China, Taiwan, and the US.

Customer relationships, R&D, and innovation

• ABF is custom-developed for each customer, integrating performance and pricing needs through collaborative development.

• Early-stage collaboration with end users and substrate manufacturers drives innovation and high-speed development.

• R&D and technical teams work closely with customers to anticipate next-generation requirements and address on-site challenges.

• Expansion into adhesive, molding, and magnetic materials for advanced semiconductor applications, with magnetic materials already contributing to profit.

• Strong global presence with subsidiaries and technical professionals in key markets for real-time customer engagement.