LOTTE Chemical Group strengthens semiconductor materials competitiveness…

■ Hantok Chemicals is the world's largest producer and Korea’s only domestic producer of tetramethylammonium hydroxide (TMAH) for semiconductors and display units… With a second production base in Pyeongtaek added to Ulsan facility, it will strengthen supply chain stability and enhance its ability to respond to customer demand.
■ LOTTE Chemical Group has established a vertically integrated production system for semiconductor developers, creating a stable supply chain spanning from tetramethylammonium chloride (TMAC), the key raw material produced by LOTTE Fine Chemical, to TMAH, the final product manufactured by Hantok Chemicals.
■ Lee Young-jun, CEO of LOTTE Chemical Group, stated, "The groundbreaking of the Pyeongtaek plant represents a strategic investment that proactively addresses future market demand and serves as an important milestone in strengthening LOTTE Group's advanced materials business.” “Through the establishment of dual production bases, we expect to secure a stable supply system and further reinforce the resilience of the supply chain supporting Korea's semiconductor clusters," he added.

LOTTE Chemical Group is establishing a new production base for key semiconductor materials in Pyeongtaek to proactively meet growing global demand in line with the expansion of Korea's semiconductor clusters.

On the 19th, Hantok Chemicals, an affiliate of LOTTE Chemical Group, held a groundbreaking ceremony for its new tetramethylammonium hydroxide (TMAH) production plant at the Poseung (BIX) District in Pyeongtaek, Gyeonggi Province. TMAH is a critical developer used in semiconductor and display manufacturing processes to form fine circuit patterns during photolithography.

Hantok Chemicals will invest a total of KRW 130 billion to expand its semiconductor-grade TMAH production facilities on a 32,216㎡ (9,746-pyeong) site in the Poseung District. Production lines will be expanded in phases in line with customers' capacity expansion schedules.

Hantok Chemicals, the world's leading manufacturer of semiconductor developers, was established in 1995 as a 50:50 joint venture between LOTTE Fine Chemical and Japan's Tokuyama Corporation. Since 2020, ownership has been equally shared by LOTTE Chemical and Tokuyama.

As Korea's only producer of semiconductor-grade TMAH, Hantok Chemicals has established a vertically integrated production system together with LOTTE Fine Chemical, spanning from the key raw material, TMAC, to the final TMAH product, ensuring a stable supply chain. The Company has also been designated as a National Strategic Technology Commercialization Facility. Currently, high-purity semiconductor-grade TMAH is produced only in Korea, Taiwan, Japan, and the United States.

With production bases in both Ulsan and Pyeongtaek, Hantok Chemicals expects to strengthen its ability to respond to fluctuations in global supply and demand while improving logistics efficiency and supply responsiveness through its dual-site production system.

Approximately 70 guests attended the groundbreaking ceremony, including Roh Junhyeong, CEO of LOTTE Corporation; Lee Young-jun, Head of LOTTE Chemical Group; Jeong Seungwon, CEO of LOTTE Fine Chemical; An Hyo Taeck, CEO of Hantok Chemicals; Hiroshi Yokota, Chairman of Tokuyama Corporation; Kim Neungsik, Commissioner of the Gyeonggi Free Economic Zone Authority; Lee Seong-ho, Vice Mayor of Pyeongtaek; as well as representatives from LOTTE Group, Tokuyama, local governments, and partner companies.

In his congratulatory remarks, Lee Young-jun, CEO of LOTTE Chemical Group, said, "The groundbreaking of the Pyeongtaek plant represents a strategic investment to proactively address future demand and an important milestone in strengthening LOTTE Group's advanced materials business.” “By establishing dual production bases in Pyeongtaek in addition to Ulsan, we expect to secure a stable supply system and further enhance the resilience of the supply chain supporting Korea's semiconductor clusters."

Hiroshi Yokota, Chairman of Tokuyama Corporation, stated, "We are confident that the Pyeongtaek plant will contribute to the future growth of the semiconductor industry by ensuring a stable supply of high-quality materials."

Kim Neungsik, Commissioner of the Gyeonggi Free Economic Zone Authority, said, "The groundbreaking of Hantok Chemicals' Pyeongtaek plant is highly significant, as Korea's only producer of semiconductor developers is establishing its first production base in the Seoul metropolitan area within the Gyeonggi Free Economic Zone. “We will provide our full administrative support to ensure that Hantok Chemicals' investment proceeds smoothly."