Sumitomo Bakelite to Boost Advanced Chip Packaging Output in China and Singapore on AI Demand

Japanese semiconductor materials leader Sumitomo Bakelite announced plans Friday to expand production of advanced chip packaging materials in China and Singapore, marking its second capacity increase for Chinese operations in less than four months as artificial intelligence fuels demand for more sophisticated semiconductors.

The Tokyo-based company said it will add production lines for mold underfill (MUF) materials and compression-molding granules at its facilities in Suzhou, Jiangsu province, and Singapore. The company did not disclose the investment amount.

The expansion is expected to roughly double the company’s MUF material production capacity and triple its capacity for compression-molding granules compared to current levels, according to a company statement. The Suzhou lines will be installed at a factory completed in 2024, with production scheduled to begin in fiscal 2030. The Singapore lines, also slated for an existing facility, are expected to come online by the end of fiscal 2028.

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