Ajinomoto, the company known for inventing MSG seasoning, has confirmed a roughly 30% price increase on its Ajinomoto Build-up Film (ABF), an insulation material used inside virtually every advanced AI chip package. The hike, rolled out on a client-by-client basis, reflects a supply shortage analysts expect to persist well into 2027 and possibly beyond. Ajinomoto holds over 95% market share in ABF, with Sekisui Chemical holding the remaining sliver at around 5%. The price increase followed public pressure from activist shareholder Palliser Capital, which pushed for a hike of more than 30% in March 2026; Ajinomoto’s May announcement landed in that range. Forecasts show a supply-demand gap of about 10% in the second half of 2026, widening to 21% in 2027 and 42% by 2028. Ajinomoto has pledged more than ¥25 billion, roughly $150 million, to expand production capacity by 50% by 2030, with a new plant in Japan expected to come online around 2032. Analysts estimate the hike could push substrate costs up by 3-6% across the semiconductor industry. During 2020 and 2021, ABF shortages led to price surges of up to 40%. Ajinomoto’s stock has risen 65% year-to-date as of mid-2026.