U.K.-based activist fund Palliser Capital has expanded its hunt for overlooked artificial intelligence beneficiaries in Japan with a stake in seasoning-maker Ajinomoto, according to people familiar with the matter.

Palliser has built a position in Ajinomoto within the past six months and is lobbying for the firm to raise prices for its chip-insulation products, the people said, asking not to be named as the information is private. Palliser is now among Ajinomoto¡¯s top 25 shareholders, they said.

The fund is calling for a more than 30% increase in prices for Ajinomoto Build-Up Film (ABF), a document shows. ABF is used to package high-performance semiconductors, and Palliser believes Ajinomoto is missing out on substantial share price upside from the AI infrastructure build-out, the document shows.

A representative for Ajinomoto declined to comment.

The investment is part of Palliser¡¯s move to identify lesser-known winners from the ongoing artificial intelligence boom. It follows the fund¡¯s recent stake in toilet-maker Toto, where it is calling for more disclosure around the company¡¯s chip-parts business.

Ajinomoto holds more than 90% of global market share for insulating materials used in PCs and data-center servers, according to its website. Palliser is urging the company to establish the ABF business as a standalone segment to raise awareness of its strength, according to the people.

Ajinomoto shares have gained around 3% in the past six months, underperforming Japan¡¯s benchmark Topix, which has risen almost 12%. In contrast, other makers of chip materials like Ibiden and Resonac Holdings have rallied more than 60%.

Ajinomoto, which is known for discovering MSG seasoning more than 100 years ago, brought its resin-based chip-insulating films to market in 1999. Their origins lie in Ajinomoto¡¯s command of MSG. Chlorinated paraffin, a byproduct of the MSG-making process, can be used to soften resin, according to the company¡¯s website.

ABF sales are rising due to AI demand and the business will ¡°drive company-wide performance¡± in upcoming quarters, according to Ajinomoto¡¯s February earnings presentation. The company opened a new facility to produce ABF products in Gunma Prefecture in October.

The ABF business currently falls under Ajinomoto¡¯s ¡°healthcare and others¡± segment, which accounted for around 29% of the company¡¯s total business profit in the fiscal year ended March 2025.

Japan¡¯s manufacturing industry is home to many niche players in the semiconductor value chain thanks to the country¡¯s decadeslong history in chip production. Cosmetics firm Kao, for example, also makes cleaning products for chip wafers.