Japanese consumer goods makers are moving further into semiconductor materials to capture AI-led demand, Nikkei reported Thursday.

Kao Corporation (TYO:4452) has set up a Taiwan hub to develop and produce chip-cleaning agents with customers including Taiwan Semiconductor Manufacturing Company (TPE:2330), as advanced chips increase the need for contamination control, according to the report.

Its semiconductor cleaning sales rose about 40%, supporting a 7% gain in chemical revenue to 451.5 billion yen, the report said.

Ajinomoto (TYO:2802) is expanding capacity for its ABF insulating film, which holds over 95% global share in chip substrates, with more than 25 billion yen in planned investment through 2030, according to the report.

Sakura Color Products Corporation and Nisshin Seifun (TYO:2002) unit Nisshin Engineering are also applying legacy technologies to chip production processes, the report said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)