Sumitomo Bakelite Expands AI Chip Encapsulant Capacity in China and Singapore: Mold Underfill Doubles, Granular Material Triples
Sumitomo Bakelite announces significant capacity expansion for semiconductor encapsulants at its Suzhou and Singapore sites to meet growing AI demand, aiming to double Mold Underfill capacity and triple granular material output.
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Sumitomo Bakelite announced in October 2026 that it will invest in expanding production capacity for advanced semiconductor package encapsulants at its sites in Suzhou, China, and Singapore. This move addresses the increasing demand for high-density, thin, and large packages driven by generative AI applications.
The investment is expected to increase the production capacity for Mold Underfill (MUF) encapsulants, specifically the 'Sumicon EME' series, to approximately twice the current level. The capacity for compression molding granular encapsulants, such as 'Sumicon EME Version GR', will expand to about three times the current level. Specifically, the Suzhou site will add a building within its new factory grounds, with production scheduled to start in fiscal year 2030. The Singapore site will install new lines within its existing factory, with production planned to begin by the end of fiscal year 2028.
Separately, Sumitomo Bakelite is set to acquire Kyocera's chemical business in late October, which will further strengthen its production capabilities.