Old-Line Japanese Manufacturers Emerge as AI Chip Winners

Generative AI is driving demand for data centers and high-performance computing chips, prompting traditional Japanese manufacturers to apply decades of materials expertise to the semiconductor supply chain. Ajinomoto has extended its food-chemistry capabilities into ABF insulating film for chip packaging, Kao is using precision chemistry to develop process materials, and TOTO is supplying wafer-fabrication components based on its ceramics technology. The moves are opening a second, higher-value avenue for growth.

A recent report identified Kao, Ajinomoto and TOTO as leading examples of traditional Japanese companies benefiting from the AI boom by expanding into new sectors. Ajinomoto, which began mass-producing ABF in 1999, now supplies a key material used in packaging substrates for advanced processors. The report did not disclose new investment amounts or dates for individual orders, but said demand for the relevant materials and components has accelerated since generative AI expanded in the 2020s, prompting the companies to broaden their semiconductor operations.