Technological Self-Reliance in China: A War from Lithography Machines to ABF Films
"China's Tech Independence: A Battle from Lithography Machines to ABF Film"
In August 2026, Japan's Ajinomoto announced a 30% supply cut of ABF film to Chinese mainland clients, causing industry-wide shock and fears of price hikes and shortages in the semiconductor supply chain. That same year, Chinese company Lotus Holdings, known for its MSG business, acquired a small domestic ABF film startup for 103 million yuan, aiming to change this passive situation.
ABF film is a core insulating material for advanced CPU, GPU, and AI chip packages. Ajinomoto, originally a food flavoring company, has monopolized over 95% of the global ABF film market for nearly 30 years, deriving its technology from byproducts of monosodium glutamate production. With AI chips consuming 5-10 times more ABF film than traditional chips, the supply-demand gap is widening. Ajinomoto's supply cut to China, where domestic ABF film production accounts for less than 5%, directly threatens the production of domestic high-end AI chips and their substrates.
This incident highlights a crucial but often overlooked truth: the vulnerabilities in China's quest for technological self-reliance extend beyond headline areas like lithography machines to critical but seemingly minor components—insulating films, photoresists, electronic specialty gases, etc.
The article frames China's tech independence as a multi-front war. While major breakthroughs have been achieved in chip design (e.g., Huawei's HiSilicon), foundry (e.g., SMIC), and memory chips (e.g., YMTC), countless smaller "Ajinomoto-style" chokepoints remain. Lotus Holdings' acquisition represents a significant shift: the battle is no longer fought only by tech giants but has become a collective, industry-wide effort involving companies from diverse backgrounds.
Historically, external blockades have often spurred China's technological breakthroughs, as seen with Huawei's Kirin chips and YMTC's 3D NAND flash memory. Ajinomoto's supply cut, while a short-term challenge, may similarly catalyze domestic innovation in ABF film and other critical materials. The path to technological sovereignty is long and arduous, requiring sustained patience and investment to fill every gap in the complex supply chain. Lotus's move is not an immediate solution but a step towards that future, symbolizing a broader, relentless march toward independence.
marsbit29m ago
