World's No.1 Semiconductor Core Material Developer
Expanding Production Facilities in Pyeongtaek Poseung District
The Lotte Chemical Group, which is reducing the proportion of its general petrochemical business, is actively investing to strengthen its high-value specialty business.
Handok Chemical, a semiconductor core materials company under the Lotte Chemical Group, announced on the 26th that it has signed an investment agreement worth 130 billion KRW with the Gyeonggi Free Economic Zone Authority and Pyeongtaek City for the Pyeongtaek Poseung District.
At the signing ceremony held at the Pyeongtaek Port Marine Center, attendees included Ahn Hyo-taek, CEO of Handok Chemical, Jeong Seung-won, CEO-designate of Lotte Fine Chemical, and Choi Won-yong, head of the Gyeonggi Free Economic Zone Authority, among other officials.
Handok Chemical secured a new site of 9,746 pyeong in the Pyeongtaek Poseung District and plans to begin construction of a semiconductor developer (TMAH) production facility in the second half of next year, with production starting by the end of 2026. TMAH is an indispensable core material used in the process of developing fine circuit patterns in semiconductors and displays. High-purity semiconductor developer production is currently possible only in Korea, Taiwan, Japan, and the United States, and Handok Chemical’s plant has been selected as a national strategic technology commercialization facility.
Handok Chemical, the world’s number one manufacturer of semiconductor developer (TMAH), was established in 1995 as a 50:50 joint venture between Lotte Fine Chemical and Japan’s Tokuyama. Since 2020, Lotte Chemical and Tokuyama have held 50:50 shares. Lotte Fine Chemical and Handok Chemical have succeeded in vertical integration from basic raw materials to final products within a single plant, contributing to strengthening the capabilities of the 'K-semiconductor' industry.
Through this investment agreement, Lotte expects to reduce logistics costs, secure supply stability, and respond to new demand. The new facility will reduce the distance to major current customers such as Samsung Electronics, SK Hynix, Samsung Display, and LG Display to about one-sixth, thereby lowering logistics costs. It will also be able to respond to new demand such as the formation of semiconductor mega clusters and the expansion of OLED production in the future.
The Lotte Chemical Group is adjusting its business portfolio to reduce the proportion of general petrochemicals, where global competition has intensified due to large-scale capacity expansions in China and sluggish demand. In particular, it is restructuring its business focused on basic materials and concentrating resources on nurturing new growth businesses such as specialty chemicals. Meanwhile, investments to secure future competitiveness will proceed without disruption regardless of market downturns.
CEO Jeong Seung-won stated, "Handok Chemical will further solidify its global number one position in core materials for semiconductors and displays, which are national strategic technologies. We will secure demand through the formation of semiconductor mega clusters and contribute to the competitiveness of the domestic semiconductor industry while strengthening the company’s high-value specialty business."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
