Japanese semiconductor materials suppliers Ajinomoto and Daikin Industries are expanding their operations in Taiwan to strengthen ties with the island's growing artificial intelligence supply chain, according to sources cited by Nikkei Asia. The moves come as rising AI infrastructure investment increases demand for advanced semiconductor manufacturing and packaging materials.
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Ajinomoto Expands Taiwan R&D for ABF
Ajinomoto is establishing an R&D center in Taiwan focused on Ajinomoto Build-up Film (ABF), an insulating material used in semiconductor package substrates. ABF supports the fine wiring required in high-performance semiconductor packages used for advanced computing applications.
The Taiwan presence will bring Ajinomoto's technical capabilities closer to substrate manufacturers and semiconductor customers as package designs become increasingly complex. Ajinomoto said it is considering measures to further develop its electronic materials business but did not comment on individual project details.
Daikin Strengthens Local Semiconductor Applications
Daikin Industries plans to establish a technical application center in Taiwan to deepen cooperation with semiconductor customers. The center is expected to support material testing and validation, application development and earlier engagement with existing and prospective customers, according to sources cited by Nikkei Asia. Daikin declined to comment on the reported plan.
Daikin supplies fluorine-based materials used in semiconductor manufacturing, including fluorochemicals and fluoropolymers designed for demanding process conditions.
AI Investment Drives Advanced Chip Material Demand
AI infrastructure is driving demand for advanced logic chips, high-bandwidth memory, DRAM, high-layer-count NAND and advanced packaging. SEMI expects the global semiconductor market to exceed US$2 trillion by 2030, while the semiconductor materials market is projected to reach US$83 billion in 2026 and US$92 billion in 2027.
Taiwan is expected to account for approximately 30% of the global semiconductor materials market in 2027, reinforcing its importance to suppliers supporting advanced semiconductor manufacturing and packaging.
Global Materials Suppliers Expand Taiwan Footprint
Ajinomoto and Daikin are expanding alongside other major semiconductor materials suppliers, including AGC, JSR, Merck and Entegris. The growing local presence reflects increasing demand for closer technical collaboration between materials companies and Taiwan's semiconductor manufacturers.
Local R&D and application capabilities can support material development, testing and qualification as semiconductor processes and packaging architectures become more sophisticated.
Taiwan Strengthens Position in AI Semiconductor Supply Chain
Taiwan's concentration of semiconductor manufacturing, advanced packaging, testing, and substrate production continues to attract international materials suppliers. The expansion by Ajinomoto and Daikin strengthens their access to this ecosystem while positioning both companies to participate more closely in the development of materials required for next-generation AI chips.