Ajinomoto confirmed a roughly 30% price increase on its Ajinomoto Build-up Film, the insulation material that sits inside virtually every advanced AI chip package on the planet. With over 95% market share in ABF, Ajinomoto doesn’t really have competitors breathing down its neck. A seasoning company running the AI supply chainABF is a thin resin film that acts as an insulating layer in the substrates of high-performance processors. AdvertisementThe supply gap keeps wideningThe 30% price increase didn’t come out of nowhere. What it means for chip costs and the broader marketA 30% increase in ABF prices doesn’t translate into a 30% increase in chip prices.