NewsBite analysis · AI, Business, Hardware
DigiTimes
China's AI chip ambitions collide with Ajinomoto's 95% grip on ABF film
China's semiconductor self-reliance strategy is expanding into crucial materials, specifically Ajinomoto Build-up Film (ABF), essential for AI chip packaging. Ajinomoto's impressive 95% market share presents significant challenges to China's ambitions, particularly as they seek to compete in advanced semiconductor manufacturing. This situation underscores the complexities of material dependency in chip production.
MonitorConfidence: MediumShort term horizonSupply chain risk: High
Published 18 Aug 2026, 08:20 UTC1 min read
Visit original article ↗Lead image — DigiTimes
Summary
TL;DR
- China's semiconductor strategy now targets key materials.
- Ajinomoto controls 95% of the ABF market.
- ABF is vital for AI chip packaging and production.
- Chinese firms face a critical challenge in sourcing ABF.
- Ajinomoto's dominance complicates China's self-reliance ambitions.
Interesting facts
- The focus on ABF highlights the less visible aspects of semiconductor production.
- China's semiconductor sector is experiencing a shift toward material self-sufficiency, not just technology.
Coverage gaps