SK Geocentric Enters High-Purity IPA Market for Semiconductor Cleaning Agents

Groundbreaking Ceremony Held in Ulsan on the 1st... Joint Investment with Japanese Chemical Company Tokuyama

Na Kyung-su, President of SK Geocentric. Photo by SK Geocentric

[Asia Economy Reporter Donghoon Jung] SK Innovation's chemical subsidiary SK Geocentric is taking a full-scale step into the semiconductor cleaning agent market by partnering with a Japanese chemical specialist company.

On the 1st, SK Geocentric held a groundbreaking ceremony for a high-purity 'Isopropyl Alcohol (IPA)' production plant for semiconductor cleaning agents at SK Ulsan Complex (Ulsan CLX), attended by Na Kyung-soo, President of SK Geocentric, Yokota Hiroshi, President of Tokuyama Japan, Jang Su-wan, Deputy Mayor of Ulsan City, and Ryu Young-hyun, Head of Korea Industrial Complex Corporation Ulsan Headquarters.

The two companies jointly invested approximately 120 billion KRW on a 50-50 basis to establish a joint venture called 'STAC.' STAC plans to build a plant with an annual production capacity of 30,000 tons on a 20,000㎡ (about 6,000 pyeong) site in Sangye-dong, Nam-gu, Ulsan Metropolitan City. The plant is scheduled to be completed in the second half of 2023 and start full-scale production from 2024.

During the construction phase of the STAC plant, it is expected to create about 5,000 direct and indirect jobs, including design, plant equipment manufacturing, construction, product production, and sales, contributing to the revitalization of the Ulsan regional economy. SK Geocentric will be responsible for the procurement of propylene raw materials, process operation, and marketing, while Tokuyama will provide manufacturing technology related to production. Through this, they plan to produce products with secured quality and cost competitiveness.

High-purity IPA is a material mainly used for wafer cleaning in the semiconductor manufacturing process, especially in the electronics industry, and is also used as a cleaning agent for LCD manufacturing. The high-purity IPA market is steadily growing at an average annual rate of about 8% in the semiconductor industry, driven by technological advancements such as 5G, IoT (Internet of Things), AI, and DT (Digital Transformation). The industry predicts that demand for high-purity IPA used in manufacturing will continue to increase as the semiconductor market expands.

Tokuyama is a global leading company recognized for its technology by customers through its independent production methods in Japan, Taiwan, and other regions. Its advantage lies in the entire process?from reaction, purification, to shipment?being carried out in a single factory, making quality control easier.

The Ulsan high-purity IPA production plant will apply an eco-friendly process with waste and utility reduction facilities. The two companies plan to strengthen product competitiveness in line with the eco-friendly trend.

Na Kyung-soo, President of SK Geocentric, said, "Korea and Japan's representative chemical companies have come together to jointly produce essential materials for the semiconductor industry," adding, "Both companies will continue to cooperate closely to succeed in both high-quality product production and sales."

Yokota Hiroshi, President of Tokuyama, stated in his commemorative speech, "We value the partnership with SK Geocentric above all else and will actively participate in the growing Korean high-purity IPA market based on Tokuyama's technology accumulated through long-term supply to customers in Taiwan, Singapore, and Japan."

An official from Ulsan Metropolitan City said, "We will actively cooperate so that the two companies can create great synergy in the domestic high-purity IPA market through this joint venture, and we hope this groundbreaking ceremony will serve as a catalyst for investment amid global economic instability."