Japanese plastics manufacturer Sumitomo Bakelite is set to increase its production of semiconductor encapsulation materials at its facilities in Suzhou, China, and Singapore. The company will install additional production lines for epoxy-molding compounds, crucial for cutting-edge chips used in data centers and other advanced applications.
The expansion in China, specifically at Sumitomo Bakelite (Suzhou) Co., Ltd., aims to boost capacity by approximately 30%. This move is a response to the escalating demand for semiconductors in the Chinese market, fueled by the rapid proliferation of generative AI, IoT devices, 5G applications, and electric vehicles. The company has been producing semiconductor encapsulation materials in China since 1997 and has previously expanded capacity in March 2022 and started operations at a new plant in 2025.
Commercial operation of the expanded capacity in China is anticipated around December 2028. Sumitomo Bakelite operates global production sites for these materials in Japan, China, Singapore, Taiwan, and Belgium, ensuring a stable supply chain for major markets. This strategic expansion is expected to strengthen the group's supply capabilities for high-performance products in next-generation semiconductor fields, including AI-related applications, further solidifying its position as a leading provider of semiconductor encapsulants.
