Corporations such as LG Chem, SKC, and Lotte Chemical are looking to semiconductor materials as a new breakthrough. They aim to survive by moving away from commodity products like ethylene, polyethylene (PE), and polypropylene (PP), which China has come to dominate with overwhelming volumes and low-price offensives, and shifting to high-value-added products.
According to the petrochemical industry on the 6th, Kim Dong-chun, LG Chem chief executive officer (CEO, president), said at a town hall meeting on the 22nd of last month that the company will foster semiconductors, mobility, robot materials, and anti-cancer new drugs as core businesses for the future.
LG Chem will invest 15 trillion won in research and development (R&D) through 2035 to shift its business portfolio toward high-value-added products. About 70% of that will go into industries fostering semiconductors, mobility, and robot materials.
LG Chem plans to focus on securing competitiveness in advanced packaging materials in semiconductors. It will develop high-value-added products such as adhesives for packaging, thermal management materials, and glass substrates. The goal is to grow the electronic materials business, now worth 1 trillion won, to 2 trillion won by 2030.
Lotte Chemical is also preparing to ride the semiconductor boom. Handok Chemical, a Lotte Chemical subsidiary, held a groundbreaking ceremony on the 19th of last month in Pyeongtaek, Gyeonggi Province, for a plant to produce developer (TMAH, tetramethylammonium hydroxide) for semiconductors and displays.
Handok Chemical is the No. 1 global manufacturer of semiconductor developer. It is the only company in Korea that produces developer for semiconductors. Developer is a material needed in the development process that forms fine circuit patterns during semiconductor and display manufacturing.
Handok Chemical supplies semiconductor developer to Samsung Electronics and SK hynix. It operates a plant in Ulsan. To bet on the semiconductor supercycle, it is expanding a plant in Pyeongtaek. The total investment is 130 billion won. The goal is to begin commercial production in the second half of 2027.
SKC has launched a speed race to commercialize glass substrates at its subsidiary Absolics. Glass substrates are seen as a game changer that will replace plastic materials long used when connecting semiconductor chips to printed circuit boards (PCB).
In May, SKC raised 1.1671 trillion won through a rights offering. It plans to spend a significant portion on development expense needed to push ahead with glass substrate commercialization. Absolics is currently producing glass substrate samples at its plant in Georgia, U.S.
ISC, another SKC subsidiary, has begun expanding its semiconductor test socket manufacturing plants in Korea and Vietnam. Semiconductor test sockets are components used in the final stage of semiconductor manufacturing to check whether chips operate normally.
ISC's investment totals 100 billion won, with the goal of starting production at the Korea plant in the first quarter of next year. With this, it plans to increase next year's sales to as much as 400 billion won. Current sales are 290 billion won. An ISC official said the company will gather production facilities scattered across Seongnam and Ansan in Songdo and will also relocate organizations related to research and development.