Japanese chemical maker Ajinomoto is reportedly reducing its supply of ABF film, a critical component for high-end processor packaging, to mainland China by 30%. This move, attributed to Ajinomoto prioritizing its Japanese and key overseas clients, comes amid China's efforts to develop domestic substitutes for the material, in which Ajinomoto holds over a 95% global market share. Chinese companies like Huazheng New Material, Lotus Holdings, and Hongchang Electronics are reportedly in various stages of qualifying their own ABF alternatives to fill the potential supply gap. AI
IMPACT Potential disruption to high-end chip production could impact AI hardware availability and cost.
RANK_REASON Supply chain disruption impacting a critical component for high-end processors, with geopolitical implications. [lever_c_demoted from significant: ic=1 ai=0.7]
- Ajinomoto
- AMD
- China
- Hongchang Electronics
- Huawei
- Huazheng New Material
- Intel
- Lotus Holdings
- Nvidia
- Shenghong Electronics
- Xingsen Technology
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