Ajinomoto $2802 says ABF is not currently in shortage

Ajinomoto’s CEO says AI demand is putting pressure on ABF supply, but the company expects to meet demand through 2030. Beyond that, visibility is less clear
The CEO says Ajinomoto has not raised ABF prices just because it has monopoly-like power, despite investor pressure. He argues that aggressive pricing could damage customer relationships and encourage customers to look for alternatives
However, he leaves the door open to higher prices if substrates keep becoming more complex and higher value-added. In other words, prices may rise structurally, but not through opportunistic price gouging
Ajinomoto is already preparing for longer-term demand by securing land for new facilities in central Japan. New production is expected to begin in 2032, though the timeline could be accelerated if customers need it
In other news, glass substrates are unlikely to replace ABF soon. Even if glass packaging advances by 2028, analysts expect it to be used together with ABF, not instead of it