Sumitomo Bakelite Co., Ltd. (Shinagawa-ku, Tokyo, Japan) will expand production capacity for semiconductor encapsulation materials at Sumitomo Bakelite (Suzhou) Co., Ltd. by adding new production lines for epoxy-molding compounds for semiconductor encapsulation to meet the growing demand for semiconductors in China, driven by the rapid proliferation of generative AI and other factors.
The company began production of semiconductor encapsulation materials in China in 1997 and has since expanded production capacity in line with market growth, including adding production lines at the current plant in March 2022 and starting operations at a new plant in 2025. The semiconductor market in China continues to experience growing demand across diverse sectors, including AI and IoT devices, 5G-related applications, and electric vehicles. In particular, with the rapid proliferation of generative AI, demand for semiconductors for AI data centers — such as GPUs, memory, and power semiconductors — has increased dramatically.
In anticipation of continued market growth, Sumitomo Bakelite (Suzhou) Co., Ltd. will add production lines to expand its production capacity in China by approximately 30%. Commercial operation of the expanded capacity is planned for around December 2028.
Sumitomo Bakelite Co., Ltd. operates production sites for semiconductor encapsulation materials in Japan, China, Singapore, Taiwan, and Belgium, ensuring stable supply to major markets worldwide. Through this production capacity expansion in China, the group will strengthen its supply capabilities for high-performance, high-quality products in next-generation semiconductor fields, including AI-related applications, and further enhance its presence as a leading company in semiconductor encapsulants.