Sumitomo Bakelite Expands MUF Production in China and Singapore to Meet Surging AI Chip Demand

Sumitomo Bakelite Co., Ltd. has unveiled plans to install new production lines for semiconductor encapsulation materials at its plants in Suzhou, China, and Singapore, the Tokyo-headquartered company announced on October 9, 2026.

President and Representative Director Shinichi Kajiya leads the Shinagawa-ku-based firm, which is investing to serve the fast-growing market for advanced semiconductor packages.

Singapore Lines First, Suzhou to Follow

The two sites will operate on different timelines.

In Singapore, new lines for SUMIKON™ EME mold underfill (MUF) materials and compression-molding granules will be installed inside the existing plant on Senoko South Road, with production slated to begin at the end of fiscal 2028.

The Suzhou expansion, by contrast, will be housed in a new plant completed in 2024, with production scheduled to start in fiscal 2030.

Roughly Triple Granule Output, Double MUF Supply

When the new lines come onstream, Sumitomo Bakelite expects its production capacity for MUF materials to approximately double, while capacity for compression-molding granules is expected to approximately triple versus current levels.

The expansion is not the only lever the company is pulling. Through its planned acquisition of Kyocera Corporation's chemical business at the end of October, the Sumitomo Bakelite Group will also gain Kyocera's production capacity for both MUF materials and compression-molding granules.

Combined with the new lines, the group said these initiatives will strengthen its supply capabilities in major advanced semiconductor manufacturing regions, including Japan, China, and Southeast Asia.

What the Products Do

MUF materials from Sumitomo Bakelite is designed to fill microscopic gaps with excellent filling performance and low-warpage characteristics.

By filling solder joints and encapsulating an entire package in a single molding process, the materials deliver high reliability and manufacturing efficiency, according to the company. The compression-molding granules offer similarly strong gap-filling performance.

Sumitomo Bakelite controls filler size, resin viscosity, and particle-size distribution to enable uniform molding and low warpage even on large panels, which it says improves productivity in advanced semiconductor manufacturing. The company aims to use these product strengths to respond promptly and reliably to growing demand.

The Demand Picture Behind the Investment

Sumitomo Bakelite attributed the expansions to rapidly growing demand for advanced semiconductors used in applications such as generative AI and communications satellites, with momentum particularly strong in China and Southeast Asia. It also pointed to a structural shift in package design: semiconductors are becoming increasingly dense, thin, and large, raising the technical bar for encapsulation materials. By pairing the capacity investments with the Kyocera acquisition, the group intends to build a stronger global supply system for advanced semiconductor encapsulation materials. Sumitomo Bakelite said that by reliably capturing growing demand, it aims to drive business growth and expand its market share.

Inside the Two Plants

The Suzhou operation, Sumitomo Bakelite (Suzhou) Co., Ltd., sits in Suzhou in Jiangsu Province, China.

Established in 1997, it covers approximately 60,000 square meters and currently produces epoxy molding compounds for semiconductor encapsulation and die bonding paste. Sumitomo Bakelite Singapore Pte. Ltd. dates back further, having been established in 1982 on Senoko South Road in Singapore.

The site occupies approximately 22,500 square meters and produces the same principal products: epoxy molding compounds for semiconductor encapsulation and die bonding paste.

The expansion project sits within the company's IT Materials Division, with inquiries handled by the Information & Telecommunication Materials Division of Sumitomo Bakelite Co., Ltd.