【Japanese Manufacturers are Amazing】The Story of How Japanese Chemical Materials Power Semiconductors
“Food manufacturers support CPUs, and toilet manufacturers make cutting-edge chips.”
Introduction | Your work is creating the world's most advanced semiconductors
Suddenly, did you know this fact?
Without materials made by Ajinomoto, the latest AI chips could not exist.
Without ceramics fired by TOTO, semiconductors could not be manufactured.
“Wait, what does that mean?” you might be thinking.
I (Kaname) couldn't believe it either when I first heard it😮
But this is an undeniable fact.
Food manufacturers, sanitary equipment manufacturers, and chemical manufacturers—materials from companies that seem completely unrelated at first glance are supporting NVIDIA's GPUs and Intel's CPUs.
This is the story of the world of “chemical materials and semiconductors.”
In this article, I will explain the chemical materials essential for semiconductor manufacturing in an easy-to-understand way, step by step.
From my perspective as a researcher in chemistry and materials, I would be happy if you could feel how your own work connects to the bigger picture.
After reading this, you will understand the following:
What kind of chemical materials are used in each process of semiconductor manufacturing
Why Ajinomoto's “ABF” and TOTO's ceramics are able to monopolize the global market share
What the “once-in-30-years technological revolution” in photoresists is
The surprising material in which Japan is strong: abrasives (CMP slurry)
How you can get involved in this field as a chemistry and materials researcher
Recommended for people like this
Researchers and students in chemistry and materials who want to know the connection to semiconductors. People who have started to think, “How does my specialty connect to the semiconductor industry?”
① Ajinomoto's ABF | The interlayer insulating material that supports the “foundation” of CPUs and GPUs
Why does a food manufacturer have a nearly 100% global market share?
The first thing I will introduce is “ABF (Ajinomoto Build-up Film),” developed by the Ajinomoto Group.
ABF is an epoxy resin-based film used as an interlayer insulating material for semiconductor package substrates. As the insulating layer for 'FC-BGA (Flip Chip BGA) substrates' used to mount CPU and GPU chips onto boards, it currently boasts a nearly 100% share of the global market for high-performance PCs (according to Ajinomoto Fine-Techno Co., Inc. data).
The question, 'Why a food manufacturer?' is valid. The answer lies in history.
Ajinomoto's umami seasoning (monosodium glutamate) was once produced using chemical synthesis, and that manufacturing process yielded intermediates that could be used as curing agents for epoxy resins. By developing that technology, ABF was born in 1999 as a film-type interlayer insulating material.
The conventional wisdom in the semiconductor industry was to 'apply liquid insulating material and let it dry.' However, liquid materials had many issues, such as the inclusion of air bubbles, unevenness, processing steps for each side, and a deteriorating work environment due to solvents.
That is when Ajinomoto, with a mindset typical of a food company, took the approach of delivering film coated with liquid varnish in a frozen state. By turning it into a film, simultaneous vacuum lamination on both sides became possible, significantly reducing the number of process steps.
Technical Strengths of ABF
From the perspective of a chemical researcher, the strengths of ABF are these three points.
High Insulation and Surface Smoothness ABF has a thickness of 10 to 100 μm per layer. Since the diameter of a human hair is about 80 μm, it can form a uniform insulating film at a thickness equal to or less than that. Because of its high surface smoothness, fine copper wiring can be stacked on top of it.
Ease of Laser Processing The process of using a laser to drill holes (vias) in ABF and then applying copper plating to create interlayer connections has become standard. In a joint study by the University of Tokyo, Ajinomoto Fine-Techno, Mitsubishi Electric, and Spectronix (announced in 2024), they succeeded in ultra-fine hole drilling with a 3 μm diameter and 5 μm pitch using a DUV laser, and progress toward next-generation mounting technology is steadily advancing.
The Secret of Epoxy Resin Technology The source of ABF's competitiveness is said to be its 'closely guarded raw material formulation technology' (Nihon Keizai Shimbun). Over the past 20+ years, many electronic material manufacturers have attempted to develop competing materials for ABF, but they have yet to break its market share.
Growing Market and the Benefits of AI
The global ABF market was approximately 676 billion yen as of 2023 and is projected to reach approximately 1.18 trillion yen by 2030 (CAGR of approximately 7.8%, according to Exactitude Consultancy). Against the backdrop of the rapid expansion in demand for generative AI and data centers, the demand for high-performance AI GPUs and CPUs is growing explosively, and ABF shipment volumes are expected to continue to increase.
The profit margin of Ajinomoto's functional materials business, which includes ABF, for the fiscal year ending March 2025 is at a staggering level of over 50% (TechnoProducer analysis). This is proof that ABF has high price competitiveness as an 'indispensable key material.'
Currently, US startups like Thintronics are working on developing competing materials, but ABF's status as the de facto standard (industry standard) is seen as unlikely to be shaken for the time being.
② TOTO's Fine Ceramics | Toilet Technology Supports Global Semiconductors
An Unexpected Business Generating 'Over 40% Profit Margins'
Next, we introduce TOTO.
TOTO, the largest toilet manufacturer known for the Washlet, is currently attracting attention from the market as a 'semiconductor stock.' In its financial results for the fiscal year ending March 2025, its ceramics business for semiconductor manufacturing equipment achieved sales of 50.3 billion yen, operating profit of 20.4 billion yen (42% of total company operating profit), and an operating profit margin of over 40%, realizing profitability far exceeding that of its housing equipment business (from TOTO Fine Ceramics business data).
The history of this business dates back to 1984. Although they established the 'Fine Ceramics Division' by leveraging their sanitary ware technology, it went through a period of nearly 30 years without significant profits. It was in the 2020s that it suddenly blossomed.
Three products TOTO supplies for semiconductor manufacturing equipment
1. Electrostatic Chuck (ESC)
This is a component used in the front-end semiconductor manufacturing process to secure silicon wafers to etching and film deposition equipment. By using electrostatic force to attract the wafer, it holds it with micrometer-level precision.
This component requires high purity, high strength, high thermal conductivity, and high insulation properties all at the same time. Leveraging its know-how in "uniform firing" from sanitary ware, TOTO achieved this by maximizing the purity of aluminum oxide (alumina). In fiscal year 2023, electrostatic chucks accounted for approximately 70% of the ceramics business sales.
In cutting-edge memory semiconductors, "stacking" technology, where memory elements are stacked over 100 layers high, is advancing. As processes become more rigorous, the durability requirements for electrostatic chucks are becoming increasingly stringent (from comments by Specially Appointed Professor Makoto Sekine of Nagoya University).
2. AD (Aerosol Deposition) Components
These are components used for applications such as the inner walls of semiconductor manufacturing equipment, where ceramic films are formed using a proprietary technology called the Aerosol Deposition method. They play a role in suppressing plasma-induced corrosion and preventing the generation of nano-level foreign matter (particles). They account for approximately 30% of ceramics business sales.
3. Large Structural Components
Using "slip casting" technology cultivated in its founding business of sanitary ware manufacturing, TOTO can realize ultra-large ceramic components with thin-walled, hollow structures up to 4 meters in size through integrated molding. They have a wide range of applications, including for flat panel display manufacturing equipment.
Next Move: SiSiC Ceramics and Expansion into Back-end Processes
At the "Highly-functional Ceramics Expo" held in October 2024, TOTO exhibited a reference model of "SiSiC ceramics," a mixture of silicon (Si) and silicon carbide (SiC). They have succeeded in increasing the SiC ratio to over 95%, and as a material whose properties—such as strength-focused or thermal conductivity-focused—can be customized depending on the application, they are also looking into expanding into applications other than semiconductor manufacturing equipment.
Furthermore, TOTO is currently advancing the development of ceramics for the "back-end" of semiconductors (chiplet packaging processes) and plans to invest 29 billion yen under its medium-term management plan through fiscal year 2026. A representative expressed expectations, stating, "We anticipate orders to increase by several dozen times in the medium term" (from Nikkan Kogyo Shimbun).
As a chemical researcher, the point to note is the fact that traditional techniques like the molding and firing of pottery are supporting the foundation of the cutting-edge semiconductor industry. "Purity control," "suppression of uneven firing," and "realization of homogeneous composition"—the essence of the technology required is the same in both the world of pottery and semiconductors.
3. Photoresist | A Once-in-30-Years Revolution is Beginning Now
Chemical materials that "print the blueprints" of semiconductors
Photoresist is a photosensitive material used to transfer circuit patterns onto silicon wafers. When resist is applied to the wafer surface and light is shone through a mask, the solubility changes between the areas exposed to light and those that are not. By washing with a developer, fine patterns emerge.
Five Japanese chemical manufacturers (JSR, Tokyo Ohka Kogyo, Shin-Etsu Chemical, Sumitomo Chemical, and Fujifilm HD) hold approximately 90% of the global market share for this material (according to Omdia). It is a situation where "global semiconductors cannot be made without Japanese photoresist."
The world of materials changed by EUV lithography
The technology that has driven the miniaturization of semiconductors is EUV (Extreme Ultraviolet) lithography. By using extremely short light with a wavelength of 13.5 nm, process nodes of 2 nanometers or less can be realized.
The conventional mainstream was an organic polymer material called Chemically Amplified Resist (CAR). This material, which has reigned as the industry standard for about 30 years, is now at a turning point.
A 30-year technological revolution: "Metal Oxide Resist (MOR)"
MOR (Metal Oxide Resist) is emerging rapidly as a new material for next-generation EUV lithography.
Metals have a very high absorption rate for EUV light. Therefore, it is expected that they can improve the balance of sensitivity, resolution, and roughness. Conventional wisdom held that "metals must never be introduced because they cause semiconductor defects," but MOR was born from the counterintuitive idea of "actively utilizing" metals.
The technical pioneer was the US-based Inpria, which JSR acquired in 2021 to make it a wholly-owned subsidiary. Currently, they are proceeding with the development of an MOR production system (a new factory in Cheongju, South Korea, scheduled to launch in 2026) with the goal of revenue contribution in 2025-2026.
Tokyo Ohka Kogyo (TOK) has also announced its development, and is currently constructing the largest photoresist manufacturing building in Japan at its Koriyama plant in Fukushima Prefecture, with construction starting in the second half of fiscal 2024 and operations scheduled for the second half of fiscal 2026.
Furthermore, ADEKA announced in October 2025 the construction of a new metal compound plant for MOR at its Kashima Chemical Plant (investment of 3.2 billion yen, scheduled to start operations in April 2028). Chemical manufacturers are all beginning to move in unison.
Shin-Etsu Chemical is also building a new semiconductor lithography materials factory in Isesaki City, Gunma Prefecture, for approximately 83 billion yen (scheduled to start operations in 2026). This is considered their first new domestic production base in 56 years.
The EUV resist market is projected to expand from approximately 270 billion yen in 2024 to approximately 800 billion yen in 2029 (according to Verified Market Reports). It is a high-growth market expected to reach approximately 650 million dollars by 2030, with a CAGR of 23.6% during the forecast period (according to QY Research).
Implications for chemical researchers in resist materials
Photoresist is composed of a combination of numerous chemical materials, including polymer design, photoacid generator (PAG) synthesis, solvents, surfactants, and developers. MOR, in particular, is in the boundary region between inorganic and organic materials, and is a field where knowledge of organic synthesis, inorganic chemistry, polymer chemistry, and surface chemistry can be applied across disciplines.
The fact that "three Japanese companies (Stella Chemifa, Daikin, and Morita Chemical) that can produce ultra-high purity hydrogen fluoride, which dissolves glass, hold 80-90% of the global market" (according to Semiconductor Job research) also shows that the Japanese chemical industry supports the foundation of the semiconductor supply chain.
④ CMP Polishing Materials | "Polishing Chemistry" that Supports Nano-level Flattening
The CMP process that polishes chip layers
In the semiconductor manufacturing process, irregularities occur on the surface every time wiring or insulating films are stacked. The **CMP (Chemical Mechanical Polishing)** process is performed to remove these irregularities and accurately form the next layer.
As the name suggests, CMP is a polishing technology that combines chemical and mechanical actions. By pressing the wafer against a polishing pad and supplying CMP slurry (liquid abrasive) while rotating it, ultra-precise flattening on the nanometer order is achieved.
According to a survey by Yano Research Institute, the global CMP slurry market in 2024 reached 2.012 billion dollars, 110.1% of the previous year, achieving double-digit growth. The main factors are the expansion of demand for semiconductors for generative AI and data centers, and increased demand for advanced foundries and HBM (High Bandwidth Memory), and 2.183 billion dollars, 108.5% of the previous year, is predicted for 2025.
CMP slurry chemistry: What and how to polish
CMP slurry is mainly composed of the following three components.
Abrasive grains (polishing particles): Nanoparticles such as silica (SiO₂), ceria (CeO₂), and alumina (Al₂O₃). They play the role of mechanically scraping the surface. Silica is used for oxide film polishing, and ceria is used for high-precision flattening (such as shallow trench isolation).
Chemical components (etching agents/oxidizing agents): These chemically dissolve or alter the film to be polished, making it easier to scrape. The formulation differs for each material, such as oxidizing agents + complexing agents for copper (Cu) wiring polishing, H₂O₂-based for tungsten (W), and alkaline-based for silicon oxide films.
Dispersants/pH adjusters: These uniformly disperse the abrasive grains to stabilize the slurry. Dispersion technology is the core know-how of each company.
"Polishing" is Japan's Specialty: The Market Structure of CMP
The global market share for CMP slurries is structured with US companies Cabot and Dow Dupont in 1st and 4th place, while Japan's Resonac, Fujimi Incorporated, and Fujifilm occupy 2nd, 3rd, and 5th place, with Japanese manufacturers holding approximately 45% of the share (according to Kagaku Gyokai Dot Com).
As for polishing pads, the joint venture between Japan's Nitta and DuPont, "Nitta DuPont," boasts a **global market share of approximately 70%**.
Of particular note are the trends in tungsten (W) slurries for advanced logic semiconductors (GAA structure). According to a report by Yano Research Institute (2025 edition), demand for W slurries is expanding in advanced logic fields such as FinFET and GAA (Gate All Around). Furthermore, Cu wiring layers from companies like TSMC have surged since 2024 (planned to expand from 16 to 23 layers in the future), and demand for Cu slurries is also expected to continue its rapid growth.
In addition, the adoption of new materials for wiring such as cobalt (Co), ruthenium (Ru), and molybdenum (Mo) is progressing in some areas, and companies have begun developing new slurries to support these.
Resonac's Demonstrated "AI x CMP Slurry Research"
As a materials researcher, one cannot overlook the initiative announced by Resonac in August 2024. The company introduced Neural Network Potential (NNP) technology—a method for calculating interatomic interaction energy using machine learning—to elucidate the polishing mechanism of CMP slurries for the first time. Because it is over 100,000 times faster than conventional first-principles calculations while maintaining accuracy, it is expected to accelerate materials development.
This is truly a practical example of Materials Informatics (MI), and I feel it is a symbolic case of an era where chemical researchers like us master AI tools.
⑤ Other Notable Materials | Japan's Proud "Invisible Strengths"
Silicon Wafers: Approximately 56% of the World's Supply is Made in Japan
Silicon wafers, the starting point of semiconductor manufacturing, are supplied by two companies, **Shin-Etsu Chemical (approx. 30% global share) and SUMCO (approx. 26%)**, which together provide approximately 56% of the world's supply. Japanese companies continue to lead technically in the high-purity and large-diameter production of 300mm diameter wafers, and development of next-generation 450mm wafers is also underway.
Photomask Blanks: HOYA Holds 80% of the Global Market
For "photomask blanks" (the master plates used to transfer circuit patterns) used in combination with photoresists, **HOYA (formerly HOYA Corporation) holds a monopoly with approximately 80% of the global market share**. AGC is also investing in increasing production of EUV exposure mask blanks through its subsidiary AGC Electronics, aiming for sales of over 40 billion yen in 2025.
High-Purity Hydrogen Fluoride: 80-90% of the World's Supply from 3 Japanese Companies
For high-purity hydrogen fluoride (hydrofluoric acid), which is essential for semiconductor cleaning and etching processes, three companies—Stella Chemifa, Daikin Industries, and Morita Chemical Industries—hold 80-90% of the global market share (as of 2019). It is said that only these three companies can produce high-purity hydrofluoric acid with the extreme purity known as "Twelve Nine" (99.9999999999%).
As can be seen from the fact that it developed into a diplomatic issue when the Japanese government issued a notification to optimize export controls in 2019, the importance of this material is vital to the semiconductor industry.
Next-Generation Power Semiconductors: SiC and GaN are the Leading Candidates
In power semiconductors for AI data centers and electric vehicles (EVs), **SiC (silicon carbide) and GaN (gallium nitride)**, rather than conventional silicon (Si), are rapidly becoming popular as next-generation materials. They are significantly superior in heat resistance, voltage resistance, and high-frequency characteristics, and as of 2024, the SiC power semiconductor market is expanding rapidly. Toshiba Materials' silicon nitride (Si₃N₄) ceramic substrates are also seeing expanded adoption for power semiconductor modules.
Summary | Chemical Researchers Can Become "Semiconductor Designers"
I will summarize the materials and the strengths of Japanese companies introduced in this article.
What I feel once again here is the fact that the strength of the cutting-edge semiconductor industry is supported by materials and chemical technology.
It is not just design and manufacturing processes that determine the performance of AI chips. The "thinness of insulating materials," "purity of ceramics," "sensitivity and resolution of resists," and "abrasive grain size and dispersibility of slurries"—only after clearing all these chemical challenges can a chip finally function.
And all of these are the work of "chemistry and materials researchers."
As chemistry researchers, there are many places where we can contribute.
Molecular design of new materials, improvement of high-purity and refining technologies, evaluation technologies for interfaces and thin films, and materials exploration using materials informatics—these are all things that the cutting-edge semiconductor industry needs right now.
One thing you can do today.
Try overlaying the materials you are researching onto the semiconductor manufacturing process flow (front-end and back-end processes). Etching? Film deposition? Polishing? Insulation? Encapsulation? There must be a point of contact with your work somewhere 🧪
Beyond finding that point of contact, a new career as a researcher or opportunities for joint research might be waiting for you.
In the next article, I plan to write about specific approaches to applying materials informatics (MI) to semiconductor material development. If you are interested, please be sure to follow me 😊
Thank you for reading until the end!
References and Research Sources
This article has been fact-checked based on the following materials.
ABF (Ajinomoto Build-up Film)
Ajinomoto Fine-Techno Co., Inc. "Interlayer Insulating Materials" Product Page
Nikkei Inc. "Ajinomoto, Another Gold Medal in Semiconductor Materials" (September 2021)
TechnoProducer "Ajinomoto's Intellectual Property Strategy" (December 2024)
Joint Press Release by The University of Tokyo, Ajinomoto Fine-Techno, Mitsubishi Electric, and Spectronix (May 2024)
Exactitude Consultancy "ABF Market Research Report"
TOTO Ceramics
Nikkei Cross Tech 'TOTO to Make Semiconductor Field Its Next Pillar' (February 2025)
Newswitch 'Orders Expected to Increase Dozens of Times in the Medium Term... TOTO's Ceramic Materials'
TOTO Fine Ceramics Co., Ltd. Product Page
Highly-Functional Material Week Coverage Article (October 2024)
Photoresist
Nikkei Cross Tech 'Semiconductor Resists Renewed for the First Time in 30 Years for Next-Generation EUV' (August 2024)
Semicon.TODAY 'The Battle for EUV Resist Supremacy Between JSR, Shin-Etsu Chemical, and TOK' (December 2025)
Dempa Shimbun Digital 'EUV: The Key to Circuit Miniaturization in Advanced Semiconductors' (July 2024)
Verified Market Reports 'EUV Resist Market Size and Forecast'
QY Research 'EUV Photoresist Industry Survey'
CMP Slurry and Polishing Materials
Yano Research Institute 'Global CMP Slurry Market Survey (2025 Edition)'
Chemical Industry Dot Com 'Chemical Manufacturers Competing Globally: Semiconductor and Front-End Materials Edition'
Resonac 'Accelerating Semiconductor Material Development with AI-Powered Cutting-Edge Simulation Technology' (August 2024)
Semiconductor Job Agent 'Market Share of Semiconductor Material Manufacturers'
Others
Omdia 'Semiconductor Material Market Analysis (2022)'
Toshiba Materials 'Silicon Nitride Ceramic Substrate' Product Documentation
Kaname | Material development, MI, and generative AI utilization at a chemical manufacturer. My motto is to explain things clearly from the realistic perspective of a research site.