- Ajinomoto Group, which makes food seasoning products including MSG, saw its stock jump to a record high this week.
- The company also makes semiconductor material. Shares jumped as the CEO spoke of expansion plans.
Shares of a Japanese company known for its monosodium glutamate seasoning hit a record high this week as investors latched onto plans to ramp up focus on another portion of its operations - its semiconductor material business.
Ajinomoto Group, whose food seasoning products include MSG, will accelerate the expansion of its production of high-tech chipmaking film and may increase investment beyond its planned 17 billion yen ($122 million) to meet stronger demand, $4.
"It's possible that we add a little more investment," Ajinomoto Chief Executive Officer Taro Fujie told Bloomberg in an interview published Wednesday. "We'll decide as we watch the market trend."
$4 shares traded in Tokyo rose 3.8% in Thursday's session to a record closing high of ¥4,501. That move surpassed Wednesday's record intraday high of ¥4,342. The stock this year through December 1 has advanced by roughly 29%.
Ajinomoto moved into the electronic materials industry in 1996 after its researchers found it could repurpose co-products from its unami seasoning manufacturing process. The company's Build-Up Film, or ABF, is insulating material used to produce high-performance semiconductors.
The company foresees ABF shipments growing 18% every year through March 2026, Fujie told Bloomberg.
Ajinomoto recently projected $4 to ¥1.367 trillion, increasing the outlook in part on strength from its electronics segment. A weaker yen also benefits the company as it draws sales from overseas.