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View of Lotte World Tower (Photo = Lotte Holdings) |
[Alpha Biz= Kim Jisun] Hando Chemical, a key semiconductor materials company in Lotte Chemical, will invest 130 billion KRW to build a TMAH (Tetramethylammonium Hydroxide) production facility in the Pyeongtaek area of Gyeonggi Province to strengthen its high-value specialty business.
On Thursday, the company announced that it has signed an investment agreement with the Gyeonggi Free Economic Zone Authority (GFEZ) and Pyeongtaek City. According to the agreement, Hando Chemical will secure a new 9,746-pyeong site in the Pyeongtaek Poseung district and begin construction of the TMAH facility in the second half of next year. The production is expected to start by the end of 2026.
TMAH is a core material used in the process of developing fine circuit patterns for semiconductors and displays. High-purity TMAH for semiconductors is currently only produced in South Korea, Taiwan, Japan, and the United States.
Established in 1995 as a joint venture between Lotte Fine Chemical and Japan's Tokuyama, Hando Chemical is the global leader in TMAH production. Since 2020, Lotte Chemical and Tokuyama each own a 50% stake in the company.
Through this investment agreement, Lotte aims to reduce logistics costs, secure supply stability, and respond to new demand. The new production facility will be located much closer to key customers, including Samsung Electronics, SK hynix, Samsung Display, and LG Display, significantly reducing logistics costs. The facility is also expected to help meet future demand driven by the semiconductor mega-cluster and the expansion of OLED production.
Meanwhile, Lotte Chemical is adjusting its business portfolio by reducing its focus on general petrochemicals, responding to increasing global competition and sluggish demand, particularly from China.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
