Stock in a Japanese company that makes MSG is up 29% this year to a record high as it expands its push into the semiconductor industry

• 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, according to Bloomberg.

"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."

Ajinomoto 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 19% growth in fiscal 2023 sales 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.