Ajinomoto (2802) Investor update summary

Market outlook and growth drivers

• Logic IC market is forecast to grow by 37% in 2026 and 27% in 2027, driven by AI-related demand.

• Semiconductor evolution from learning to inference is increasing demand for high-performance substrates.

• Package substrates are becoming larger and more layered, increasing ABF™ usage per substrate.

• Robust performance in FY2026 with no current supply chain concerns; expansion plans target 2030 and beyond.

• ABF™ maintains over 95% market share, leveraging early-stage customer collaboration.

Business model and product innovation

• ABF™ is custom-developed for each customer, optimizing both price and performance through collaborative development.

• Product lineup is shifting toward higher value-added products, raising profit margins from 30% in FY2018 to over 50% in FY2025.

• Ongoing development of peripheral materials and next-generation packaging technologies, including co-packaged optics.

• Expansion into adhesive, molding, and magnetic materials for advanced semiconductor applications.

• Focus on evolving ABF™ for future technologies such as optical waveguides and heterogeneous integration.

Production and supply chain strategy

• New Gunma Plant, operational since 2025, features state-of-the-art automation and IoT systems for efficiency.

• Investment of ¥25 billion planned between 2023 and 2030 to expand production capacity, including a new Gifu site for post-2030 demand.

• Production structure includes in-house varnish manufacturing and outsourced film application and storage.

• Global network supports customer growth with sites in Japan, China, Taiwan, and the US.

• High-speed development system anticipates customer needs and integrates feedback across the value chain.