Japan's Semiconductor Strength Is Hidden in a Group Photo

If semiconductor equipment determines chip manufacturing capability, then semiconductor materials determine the foundation of advanced manufacturing. Japanese companies have long held a prominent position in the semiconductor materials sector, covering critical areas such as silicon wafers, photolithography materials, packaging materials, and electronic chemicals. Entering the AI era, as chip performance improves and advanced packaging develops rapidly, the importance of these materials has become even more pronounced. Among those appearing in the group photo, Shin-Etsu Chemical is one of the world’s leading enterprises in the semiconductor silicon wafer field. Silicon wafers constitute the foundational material for chip fabrication; AI chips, in particular, impose higher requirements on wafer quality, defect control, and consistency. Leveraging its long-standing expertise in silicon wafers and photolithography materials, Shin-Etsu Chemical has become a key participant in the AI chip supply chain. Meanwhile, as Chiplet, HBM (High Bandwidth Memory), and advanced packaging emerge as core directions for AI chip development, the company’s strategic positioning in related materials has further strengthened its advantage. As AI chips shift from ‘single-chip competition’ to ‘system-level integration competition’, the importance of advanced packaging continues to rise. Companies like NVIDIA employ Chiplet and HBM technologies to achieve high-density integration of computing chips and high-speed memory—driving increased demand for packaging materials. In this context, Mitsui Mining & Smelting has become an important materials supplier in the AI industrial chain thanks to its high-performance copper foil technology. Its electronic materials are widely used in high-frequency, high-speed circuit boards, IC substrates, and semiconductor packaging. As data transmission speeds in AI servers continue to increase, conventional copper foils struggle to meet the demands of high-speed signal transmission. High-performance copper foils—with lower surface roughness and higher reliability—are now essential materials for advanced packaging and high-end PCBs. Although Mitsui Mining & Smelting does not manufacture AI chips directly, its materials underpin improvements in AI system performance. Asahi Kasei represents Japan’s strength in advanced packaging materials. As a comprehensive materials enterprise, Asahi Kasei supplies critical electronic materials such as photosensitive polyimide and photosensitive dry film. Photosensitive polyimide can be applied to chip passivation layers and redistribution layers (RDL), while photosensitive dry film is used in packaging substrate manufacturing. As AI chips advance toward Chiplet and 2.5D/3D packaging, demand for high-performance packaging materials continues to grow—making Asahi Kasei another vital, behind-the-scenes player in the AI industrial chain. Nitto Denko, which has drawn industry attention over the past half-year, has emerged as a new focal point in AI server materials. Founded in 1923, the company has evolved into a global leader in specialty glass fiber and composite materials. Its low-thermal-expansion-coefficient glass fabric for high-speed servers—T-Glass—has become a market highlight. As AI server power consumption and data transmission rates increase, conventional PCB materials are increasingly unable to meet performance requirements. T-Glass serves as a critical reinforcement material for high-end copper-clad laminates (CCL), reducing thermal expansion, minimizing signal loss, and enhancing motherboard reliability in AI servers. It thus forms a fundamental material basis for AI servers, high-performance computing, and advanced packaging. Due to its manufacturing process involving proprietary formulations and precision engineering, T-Glass supply is highly concentrated—making Nitto Denko a so-called ‘invisible gatekeeper’ in AI infrastructure.

1,500-km Range and Charging Speed Tripled? Solid-State Batteries Are Approaching Their Inflection Point

The rise of solid-state batteries is disrupting the traditional automotive industry landscape, triggering comprehensive restructuring. At the automaker level, companies that achieve mass production of solid-state batteries first will establish technological barriers in market competition. Leading automakers such as BYD and Toyota—backed by robust R&D capabilities and extensive industrial chain resources—began investing early in solid-state battery technology. Through vertical integration, they control the entire value chain—from raw material supply and battery manufacturing to vehicle assembly. This gives them stronger risk resilience and cost-control capabilities, enabling rapid deployment of cutting-edge solid-state battery technology across their vehicle models, attracting more consumers, and consolidating their market positions. Conversely, smaller and mid-sized automakers—lacking technical expertise and capital investment—may gradually fall behind in the solid-state battery race, potentially relegated to mere contract manufacturers. They would rely solely on OEM services for leading automakers to sustain operations, forfeiting autonomy in innovation and competitiveness. Battery manufacturers, too, face a brutal shakeout. CATL—the dominant ‘battery king’ in the liquid-electrolyte battery era—holds significant advantages in both technology and market share. Yet its leadership is now being challenged across multiple fronts in the solid-state battery arena. Emerging players focused specifically on solid-state battery R&D—such as Weilan New Energy and ProLogium Technology—are rapidly capturing market share with distinctive technical approaches and innovative business models. Weilan New Energy has achieved several key breakthroughs in oxide-based solid electrolytes, with product performance surpassing conventional battery makers on certain metrics. ProLogium Technology focuses on developing flexible solid-state batteries, delivering novel power solutions for emerging applications including wearables and foldable smartphones—gaining visibility in niche markets. The rise of these newcomers is breaking the monopoly of the traditional battery market and accelerating industry-wide technological innovation and product upgrades. For materials suppliers, solid-state battery development presents unprecedented opportunities. Sulfide-electrolyte manufacturers such as Japan’s Asahi Kasei—leveraging deep expertise in sulfide material R&D and production—have become pivotal links in the solid-state battery value chain. As the sulfide pathway gains broader adoption in solid-state batteries, Asahi Kasei’s market demand and profitability have surged significantly. Ganfeng Lithium, a lithium-metal anode supplier, likewise benefits from the solid-state battery trend: it has made notable progress in technological innovation and capacity expansion for lithium-metal anodes—not only meeting its own solid-state battery production needs but also supplying high-quality raw materials to other battery makers, further cementing its leadership position in the global lithium industry. Moreover, specialized materials R&D firms are also entering the solid-state battery space, seeking to carve out market share by developing novel materials with unique properties—such as ceramic materials exhibiting high ionic conductivity or new polymer composites. 4.3 Policy and Capital Competition National policies play a decisive role in shaping the developmental pathways of solid-state battery technology. Different countries—based on their respective resource endowments, industrial foundations, and strategic objectives—have formulated distinct policy orientations, thereby fostering a diversified technological landscape. China, as the world’s largest new-energy vehicle market and battery producer, employs innovative mechanisms such as the ‘Challenge-Based Project Selection’ initiative to concentrate top national scientific research resources on advancing the sulfide-based route.

Asahi Kasei materials profit more than doubles on electronics, pricing

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Asahi Kasei's materials business operating income more than doubled to ¥72 billion in the first half, driven by strong electronics demand, price hikes, and currency tailwinds. The company maintained profitability in essential chemicals and electronic materials despite rising feedstock costs.

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