What is Sumitomo Bakelite’s latest capacity expansion plan for semiconductor encapsulation materials in China, and when will it be operational?

Sumitomo Bakelite Co., Ltd. announced that its affiliate, Sumitomo Bakelite (Suzhou) Co., will increase production capacity for semiconductor encapsulation materials at its Suzhou facility by approximately 30%, with the expanded capacity expected to commence commercial operations around December 2028.

Why is Sumitomo Bakelite expanding its semiconductor encapsulation materials production in China now?

The expansion reflects the ongoing surge in demand for semiconductors across multiple sectors—including artificial intelligence (AI), Internet of Things (IoT) devices, 5G applications, and electric vehicles—and particularly the rapid adoption of generative AI, which has fueled demand for semiconductors used in AI data centers, such as graphic processing units, memory chips, and power semiconductors.

Sumitomo Bakelite to boost electronic materials capacity in China

Jul 14, 2026

Sumitomo Bakelite plans to increase semiconductor encapsulation material capacity by 30% at its Suzhou facility, with operations starting around December 2028. The move targets rising demand from AI, IoT, 5G, and electric vehicle sectors.

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Sumitomo Bakelite to boost electronic materials capacity in China

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