Kemtronics has continued its stock price rise since deciding on a large-scale investment. The company mass-produces a key solvent necessary for producing extreme ultraviolet (EUV) photoresist, one of the core materials in semiconductors and displays targeted by Japan's 2019 export regulations against Korea. Kemtronics is currently conducting quality approval processes with final customers to begin full-scale mass production from the first half of next year.
As of 9:15 AM on the 8th, Kemtronics was trading at 24,500 KRW, up 1,000 KRW (4.26%) compared to the previous trading day.
Kemtronics is investing 17 billion KRW to expand its production capacity of ultra-high purity propylene glycol methyl ether acetate (PGMEA) from 10,000 tons to 25,000 tons. Leveraging its proprietary synthesis and purification know-how, the company is on the verge of achieving 99.999% (5N) grade mass production after about four years. Following a 24 billion KRW investment last year, this expansion investment is seen as a confident move to increase supply by emphasizing technological capabilities.
Previously, Kemtronics developed ultra-high purity PGMEA, a core solvent used in semiconductor and display manufacturing processes, last year. PGMEA accounts for 70-80% of the raw materials for photoresist (PR) used in semiconductor lithography processes. The PGMEA developed by Kemtronics boasts an ultra-high purity of 99.999% (5N). Ultra-high purity solvents are essential for developing EUV photoresist (PR). PGMEA is advantageous in controlling defects in EUV PR, which are close to extreme levels.
The company maximized eco-friendly factors by minimizing beta-isomers, which are harmful to human health. Global companies are sensitive to beta-isomer content. Kemtronics secured competitiveness by developing the world's first eco-friendly PGMEA technology with beta-isomer content below 1 ppm. Currently distributed PGMEA contains about 100 to 300 ppm of beta-isomers. Kemtronics succeeded in reducing beta-isomer concentration below 1 ppm to reduce PGMEA’s biological toxicity. Global companies that previously required isomer concentrations below 10 ppm are showing movements to strengthen isomer evaluation standards by referencing Kemtronics’ figures. Kemtronics is expected to expand its influence in the related market by leveraging its technological competitiveness.
The uses of PGMEA are increasing. Besides the existing PR solvent, it can also be used as a solvent for PR process auxiliary materials such as bottom anti-reflective coatings (BARC) and spin-on hardmasks (SOH). The PGMEA market is expected to grow from 926.2 billion KRW in 2022 to 968.7 billion KRW in 2023, and reach 1.0172 trillion KRW in 2024.
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