News
Key Materials Suppliers, Nitto Boseki and Ajinomoto, Report AI-Driven Capacity Constraints and Strong Sales
Friday, November 28, 2025 at 08:02 PM
Nitto Boseki stated T-Glass production capacity will only grow 10-20% in 2026 due to long lead times for specialized refractory bricks, prioritizing capacity for ABF materials over BT. Ajinomoto reported record sales in Q3 2025 and a strong outlook for its functional materials business (ABF/BT resin), confirming continued high demand for IC substrate materials driven by AI server upgrades and tighter supply of key components like HVLP copper foil and T-Glass.
Context
The burgeoning AI market is driving significant demand and creating capacity constraints for key semiconductor material suppliers. Ajinomoto, a major producer of ABF resins, reported record revenue and profit in its functional materials business for the first three quarters of FY2024, fueled by strong AI demand. The company expects robust sales and potential price increases for BT/ABF through at least the first half of 2026.
Nitto Boseki, a leading supplier of T-glass cloth for AI chip packaging, faces surging demand, with NVIDIA, Microsoft, Google, and Amazon booking most high-end capacity. Despite plans to invest 15 billion yen to increase T-glass capacity by 10-20% in FY2026 and double it by FY2027, expansion is hampered by long lead times for specialized refractory bricks. These persistent supply constraints for critical materials, including HVLP copper foil, are expected to lead to further price hikes in 2026, intensifying as the industry transitions to PCIe Gen 7 in 2027-2028.
Sources (12)
Seasonings & FoodsNittobo to triple T-Glass cloth capacity by 2027Special fiberglass fabrics hold the fate of the global AI industryNitto Boseki : Notice Regarding Expansion of Glass Cloth ...Nitto Boseki : Main Questions and Answers at the Financial ...HVLP Copper Foil Market - Global Forecast 2025-2030Financial Results for Q3 of FY2024 (Ending March 31, 2025)Notice Regarding Expansion of Glass Cloth Production ...
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