A Korea-Japan joint venture is breaking ground on a new plant in Pyeongtaek, Gyeonggi Province, to produce semiconductor material developer (TMAH, or tetramethylammonium hydroxide). Coinciding with developments such as the creation of the Yongin semiconductor cluster, the move aims to solidify a partnership spanning more than 20 years while enhancing responsiveness to customers including Samsung Electronics and SK hynix.
Handok Chemicals, a joint venture between Lotte and Japan's Tokuyama, held a groundbreaking ceremony for its semiconductor developer production plant in the Poseung district of Pyeongtaek, Gyeonggi Province, on Wednesday, the company said. About 70 people attended the ceremony, including Noh Jun-hyung, CEO of Lotte Corporation; Lee Young-jun, head of the Lotte Chemical group; Jung Seung-won, CEO of Lotte Fine Chemical (004000); Ahn Hyo-taek, CEO of Handok Chemicals; and Hiroshi Yokota, chairman of Japan's Tokuyama.
Handok Chemicals will invest a total of 130 billion won to build semiconductor developer production facilities on a site of about 32,216 square meters (approximately 9,740 pyeong) in the Poseung district of Pyeongtaek. "We plan to expand production lines in stages in line with the future expansion schedules of our customers," a Handok Chemicals official said.
Developer is a core material used in the development process that forms fine circuit patterns during semiconductor and display manufacturing. In particular, high-purity semiconductor developer can only be produced in Korea, Taiwan, Japan, and the United States. As a result, Handok Chemicals was selected as a national strategic technology commercialization facility, which provides benefits such as tax incentives.
Handok Chemicals, the only domestic manufacturer and the world's No. 1 producer of semiconductor developer, was established in 1995 as a joint venture between Lotte Fine Chemical and Japan's Tokuyama. Lotte Chemical (011170) and Tokuyama currently hold a 50-50 stake. The Lotte Chemical group has a vertically integrated system spanning from tetramethylammonium chloride (TMAC), a basic raw material from Lotte Fine Chemical, to developer, the final product of Handok Chemicals.
With this groundbreaking, Handok Chemicals will secure a production base in the greater Seoul metropolitan area in addition to its existing operations in Ulsan. The dualization of production bases is expected to help respond to global supply-and-demand volatility and improve logistics efficiency and supply response speed. The plant is also significantly closer to major customers such as Samsung Electronics, SK hynix, Samsung Display, and LG Display.
"The groundbreaking of the Pyeongtaek plant is a strategic investment that proactively responds to future demand and an important stepping stone to strengthen the Lotte Group's advanced materials business," Lee said. "By dualizing our production bases, we will secure a stable supply system and strengthen the supply chain stability of the domestic semiconductor cluster."
