[Chipformation] SK Siltron Leading Self-Reliance of the 'Semiconductor Lifeblood'

Construction of Ultrapure Water Demonstration Plant Facility at Gumi 2 Plant
Leading 'Ultrapure Water Localization' with Industry-Academia-Research-Government Consortium
Global Ultrapure Water Market Expected to Reach 23 Trillion Won in 2024

[Asia Economy Reporter Han Yeju] Ultra pure water, a key material for semiconductor production. SK Siltron, SK Group's wafer manufacturing company, is drawing attention by embarking on technological independence efforts, including the groundbreaking of an ultra pure water demonstration plant facility in collaboration with industry-academia-research-government consortiums.

Ultra pure water refers to highly purified water from which inorganic minerals, fine particles, bacteria, microorganisms, dissolved gases, and other impurities commonly found in regular water have been removed. It is water closest to theoretical purity, containing only water molecules after removing impurities such as electrolytes, microorganisms, living bacteria, fine particles, and ions. It is used in numerous cleaning processes before and after semiconductor manufacturing steps. In particular, it is essential for processes such as etching, cleaning, polishing, and cutting of silicon wafers, which are semiconductor integrated circuits. It is said that more than 1 ton of ultra pure water is used to process a single 6-inch wafer.

The problem is that ultra pure water production technology is virtually monopolized by overseas companies. Currently, Japan holds more than half of the global patents related to ultra pure water. In terms of ultra pure water production facility design, Japanese companies Kurita and Nomura occupy 100% of the domestic market. Construction and operation are also dominated by multinational companies such as Veolia and Kurita. Although domestic companies possess some ultra pure water-related technologies, commercialization is challenging due to the complex purification processes involving 20 to 30 steps. It is a natural progression that calls for technological independence in ultra pure water to prevent its militarization and to ensure stable development in semiconductor, chemical, steel, and pharmaceutical industries.

The government's special mission for 'domestic production of ultra pure water' has been assigned to Gumi City, which aims to become the domestic semiconductor supply hub. The Gumi National Industrial Complex houses 123 semiconductor materials, parts, and equipment companies including SK Siltron, MagnaChip Semiconductor, and Wonik QnC Co., Ltd., making it advantageous for cluster formation. SK Siltron, rooted in Gumi, is preparing to elevate the competitiveness of the domestic semiconductor industry through technological cooperation with the city.

In fact, SK Siltron plays an indispensable core role in SK Group's semiconductor value chain. Since acquiring Hynix in 2012, SK Group has been pursuing vertical integration in semiconductors by establishing SK Materials, SK Trichem, SK Showa Denko, and acquiring SK Siltron. By building a value chain that creates synergy among affiliates, the group aims to strengthen semiconductor technology and develop necessary materials promptly to proactively respond to the next-generation semiconductor market.

Siltron, formerly an LG Group affiliate, has grown into a strong competitor ranked third worldwide in silicon wafer manufacturing since SK Group acquired it in 2017. The company, which recorded an operating loss of 34.8 billion KRW in 2014, has recently posted strong performance due to several years of semiconductor boom and favorable exchange rates. As of the third quarter cumulative this year, SK Siltron's sales reached 1.7825 trillion KRW, and operating profit was 434.1 billion KRW. Sales increased by 33% compared to 1.3379 trillion KRW in the same period last year, and operating profit surged 120% from 196.7 billion KRW.

Securing ultra pure water technology is expected to enhance SK Siltron's competitiveness in the water industry as well. In particular, this technology can purify wastewater generated during semiconductor production processes and recycle it as industrial water, contributing to environmental problem-solving. The global market for ultra pure water is projected to grow to 23 trillion KRW by 2024. The global market size for semiconductor-grade ultra pure water is 5 trillion KRW, and the domestic market size reaches 1.5 trillion KRW.

SK Siltron plans to establish a demonstration ultra pure water production facility with a daily capacity of 2,400㎥ at its Gumi Plant 2 and aims to raise the level of domestic core operational technology to about 60% of the entire process by 2025. Additionally, it will conduct domestic research across the entire spectrum of high-purity industrial water technologies, including ▲ ultraviolet oxidation devices for ultra-low concentration organic matter removal ▲ degassing membranes for ultra-low concentration dissolved oxygen removal ▲ design, construction, operation, and integrated technologies for high-purity industrial water.