Sumitomo Bakelite to Double China Chip Packaging Materials Capacity Amid AI Boom

Sumitomo Bakelite said it would add production lines for mould underfill (MUF) materials and compression-moulding granules at facilities in Suzhou, in eastern China’s Jiangsu province, and Singapore.

The Tokyo-based company made the announcement on Friday but did not disclose the investment amount.

Capacity expansion across two facilities

The expansion is expected to roughly double the company’s production capacity for MUF materials compared with current levels, according to its statement. Capacity for compression-moulding granules is expected to triple.

The investment underscores the growing importance of advanced packaging materials in the semiconductor supply chain as the AI boom drives attention towards chip-related production.

At the Suzhou facility, the new lines will be installed as part of an expansion of an existing factory that was completed in 2024. Production at the Suzhou lines is scheduled to begin in fiscal 2030.

The lines in Singapore will also be added to an existing facility. They are expected to begin operations at the end of fiscal 2028.

The company’s statement therefore sets out expansion plans at both locations, with separate production schedules for the two facilities. Sumitomo Bakelite has not disclosed the amount it will invest in the additions.

Source: South China Morning Post