Ajinomoto lifts ABF chip prices 30% as demand surges

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Ajinomoto lifts ABF chip prices 30% as demand surges — Image source: Unblock Media

Ajinomoto hikes ABF material prices by 30%, boosting 2026 revenues and stock
Soaring AI chip demand sparks wider supply chain cost increases and shortages

On August 8, 2026 (UTC), CoinDesk reported that Ajinomoto raised prices for its Ajinomoto Build-up Film (ABF) by about 30% amid surging demand from the global AI hardware industry and mounting pressure from activist shareholder Palliser Capital. ABF is an essential insulating material used in advanced AI chips from companies like Nvidia, Intel, and AMD. Ajinomoto holds over 95% of the global ABF market, with only minor competition from Sekisui Chemical.

This price increase came as global demand for AI accelerators soared, each requiring more ABF layers as chip complexity rises. Ajinomoto’s move led to a 127% jump in quarterly revenue and a 56% surge in its stock price, according to CoinDesk. As chipmakers increased their orders, tightening supply drove the ABF market further out of balance.

The 30% increase in ABF costs is rippling through the semiconductor supply chain. Substrate manufacturing expenses have climbed an estimated 3–6%, analysts say. These higher costs are now being passed down to chipmakers, foundries, packaging companies, and ultimately to hyperscale cloud providers like Microsoft, Google, and Amazon. In 2026, big tech firms are projected to spend more than $670 billion on AI infrastructure, amplifying the effect of ABF price hikes.

ABF supply remains severely strained. Analysts forecast a 10% gap between supply and demand in the second half of 2026. This shortfall could climb to 21% in 2027 and reach 42% by 2028 unless capacity expands. Ajinomoto is investing over 25 billion yen (about $150 million) to grow ABF output by 50% by 2030, but major new facilities may not open until 2032.

Ajinomoto’s market dominance and 2026 price hike are reshaping the economics of AI hardware. With rising supply constraints, substrate and chip costs continue to escalate, forcing producers and infrastructure buyers to adjust to a new pricing reality, CoinDesk reported.