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Palliser Capital urges Ajinomoto to raise prices on semiconductor insulation materials
Tuesday, March 31, 2026 at 09:14 AM
Palliser Capital, a shareholder of Ajinomoto, has reportedly urged the company to increase prices for its Ajinomoto Build-up Film (ABF), a critical insulation material used in high-end semiconductor packaging.
Context
On March 31, 2026, activist investor Palliser Capital announced a value enhancement plan for Ajinomoto Co., calling the Japanese seasoning giant the world’s most under-monetized AI infrastructure monopoly. Palliser, now a top 25 shareholder, is lobbying for a price increase of over 30% for Ajinomoto Build-up Film (ABF). This specialized insulation material is a critical bottleneck in semiconductor packaging, with Ajinomoto maintaining a 95% global market share and a near 100% monopoly in high-end AI data center chips.
The activist fund argues that Ajinomoto currently trades at a significant valuation discount despite its mission-critical role in the AI supply chain. Palliser is pushing for the functional materials business to become a standalone reporting segment to improve transparency. While Ajinomoto faces looming competition from South Korea's Hanwha E-ssential, which aims to enter the market in 2026, the demand for ABF remains fueled by the ongoing expansion of GPU and CPU manufacturing for AI infrastructure.
Sources (7)
Activist Palliser Targets MSG Maker Ajinomoto in AI Hunt - Bloomberg[PDF] The History of the Ajinomoto GroupHanwha E-ssential challenges Ajinomoto's ABF monopoly with 2026 launchCan Japan hold on to its 'indispensable' companies? - Financial TimesPalliser Capital Publishes Value Enhancement Plan for AjinomotoMaximising the Value of Ajinomoto[PDF] TO: The Bureau of Industry and Security, U.S. Department of ...
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