Initial Supply of Pitch for Isotropic Synthetic Graphite Begins
Contributing to Product Localization and Securing Growth Momentum
OCI is set to actively target the pitch market?pitch being a key raw material for isotropic synthetic graphite used in semiconductors?thereby expanding its portfolio of high value-added semiconductor materials.
On July 21, OCI announced that it has begun the initial supply of pitch for isotropic synthetic graphite, which is essential in the semiconductor and advanced materials sectors, to Ebiden Graphite Korea, the only domestic manufacturer of isotropic synthetic graphite.
Isotropic synthetic graphite is a high-purity, high-heat-resistant material with excellent electrical conductivity and stable physical properties even at high temperatures. It is used as a mold material that allows for the melting and casting of various industrial materials. In semiconductor wafer manufacturing, it serves as a crucible for melting polysilicon into ingots, and in semiconductor deposition processes, it is used as a component for heating wafers. Additionally, it is an essential material in advanced defense industries, such as missiles and fighter jets, as well as in the nuclear industry, including neutron moderators in nuclear power plants.
OCI is one of the world's largest liquid pitch manufacturers, currently producing 520,000 tons of liquid pitch annually in Korea and China, and holds the only domestic pitch production technology. The pitch produced by OCI is primarily used as a raw material for electrode binders in aluminum smelting, but its applications are expanding as it is now also used as a raw material for isotropic synthetic graphite, which is increasingly recognized as an essential material in semiconductors and various other industries.
Pitch, which is an essential raw material for isotropic synthetic graphite, has previously been entirely dependent on imports. However, with this supply, OCI has contributed to the localization of pitch for isotropic synthetic graphite.
The global isotropic synthetic graphite materials market is currently valued at about $3 billion (approximately 4.2 trillion won) and is expected to show stable growth, driven by the recovery of the semiconductor market and the expansion of the defense industry. As a result, demand for pitch used in isotropic synthetic graphite is also expected to continue increasing. OCI can expand production of pitch for isotropic synthetic graphite by optimizing existing facilities without additional investment, and plans to actively expand its customer base in line with the recovery of the semiconductor market and increased demand for isotropic synthetic graphite.
Meanwhile, OCI is focusing on strengthening the competitiveness of its high value-added materials business, centering on semiconductors and secondary batteries, to achieve mid- to long-term growth despite challenging business conditions. OCI began its first domestic supply of semiconductor-grade phosphoric acid to SK Hynix in the second half of last year and plans to gradually expand production in line with the growth of its customer base. In addition, with the completion of its acquisition of a stake in P&O Chemical in February and ongoing efforts to secure customers, OCI expects its semiconductor-grade hydrogen peroxide business to gradually expand as well.
Kim Yushin, Vice Chairman of OCI, stated, "Starting with this supply to Ebiden, we will continue to expand our pitch business for semiconductor materials and diversify our product supply to various advanced sectors, including the defense industry and small modular reactors. We will continue to increase the proportion of high value-added materials in our business to maximize profitability and secure mid- to long-term growth momentum."
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