Sumitomo Bakelite Co will expand production of semiconductor encapsulation materials in China by approximately 30%, ramping up capacity to meet booming demand fueled by the rapid growth of generative AI and other high-performance computing applications.

 

The company said it will add new production lines at Sumitomo Bakelite (Suzhou) Co., Ltd., with commercial operations scheduled to begin around December 2028.

 

Sumitomo Bakelite has been manufacturing semiconductor encapsulation materials in China since 1997 and has steadily expanded capacity alongside market growth. Most recently, it added production lines at its existing Suzhou facility in March 2022 and brought a new plant online in 2025.

 

The latest investment comes as China's semiconductor market continues to expand across AI and IoT devices, 5G infrastructure, electric vehicles and other advanced technology sectors. Demand has accelerated sharply with the rapid adoption of generative AI, driving increased need for AI data center chips, including GPUs, memory and power semiconductors.

 

The capacity expansion is aimed at strengthening the company's ability to serve China's fast-growing semiconductor industry while supporting next-generation AI applications.

 

Sumitomo Bakelite operates semiconductor encapsulation materials production sites in Japan, China, Singapore, Taiwan and Belgium, giving it a global manufacturing footprint. 

 

The company said the additional capacity in China will reinforce its ability to supply high-performance, high-quality semiconductor encapsulation materials and strengthen its position in the rapidly evolving semiconductor market.