Japan’s Sumitomo Bakelite expands China chip packaging materials output amid AI boom
Por Howard Liu — South China Morning Post – News feed
Advertisement Semiconductors Tech Tech Trends Japan’s Sumitomo Bakelite expands China chip packaging materials output amid AI boom
The investment underscores the growing importance of advanced packaging materials in the semiconductor supply chain
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Howard Liu in Beijing Published: 11:04am, 11 Oct 2026 Japanese semiconductor materials giant Sumitomo Bakelite plans to expand production of advanced chip packaging materials in China and Singapore, marking the second such announcement for its Chinese operations in less than four months as artificial intelligence drives demand for more sophisticated semiconductors.
The Tokyo-based company said on Friday that it would add production lines for mould underfill (MUF) materials and compression-moulding granules at its facilities in Suzhou, eastern China’s Jiangsu province, and Singapore. The company did not disclose an investment amount.
The expansion is expected to roughly double the company’s production capacity for MUF materials and triple that for compression-moulding granules compared with current levels, according to its statement.
The Suzhou lines will be installed as part of an expansion of an existing factory completed in 2024, with production scheduled to begin in fiscal 2030. The Singapore lines, also to be added to an existing facility, are expected to begin operations at the end of fiscal 2028.
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