Sumitomo Bakelite Co will amplify manufacturing of semiconductor encapsulation materials in China by about 30%, scaling up capacity to fulfill increasing demand fueled by the fast growth of generative AI and other high-performance computing applications.
The company stated it will add new manufacturing lines at Sumitomo Bakelite (Suzhou) Co., Ltd., with commercial operations scheduled to start around December 2028.
Sumitomo Bakelite has been production semiconductor encapsulation materials in China since 1997 and has progressively extended capacity alongside market growth. Most lately, it added manufacturing lines at its present Suzhou facility in March 2022 and brought a new plant online in 2025.
The latest investment comes as China’s semiconductor market keeps to enlarge across AI and IoT devices, 5G infrastructure, electric vehicles and other advanced technology sectors. Requirements has increased significantly with the fast adoption of generative AI, driving increased need for AI data center chips, such as GPUs, memory and power semiconductors.
The capacity enlargement is targeted at reinforcing the company’s ability to serve China’s fast-growing semiconductor industry while helping next-generation AI applications.
Sumitomo Bakelite operates semiconductor encapsulation materials manufacturing sites in Japan, China, Singapore, Taiwan and Belgium, giving it a worldwide production footprint.
The company stated that the additional capacity in China will strengthen its ability to deliver high-quality , semiconductor encapsulation materials and reinforce its position in the quickly developing semiconductor market.
