Semiconductor supply chain issues emerge, responding to localization, internalization, and supply line diversification
AI Patterning Issues, Development of Cryogenic Etching Gas and Low-Carbon Alternative Materials Is Necessary

[Editor's Note] Wonik Materials is a leading company in special gases for semiconductors, and has maintained its position firmly amidst the growing semiconductor supply chain issues, and has achieved meaningful results through R&D even in rapidly changing situations such as AI. In the midst of this, Wonik Materials attracted the attention of many people by introducing the results of its research and development related to the above at 'SEMICON Korea 2024' held from January 31 to February 2. At this exhibition, our magazine met with Han Jeong-wook, CEO of Wonik Materials, to hear about the semiconductor material supply chain and response measures to AI issues.

▲Han Jeong-wook, CEO of Wonik Materials

■ Please introduce Wonik Materials.

Wonik Materials is a company that supplies gases used in most semiconductor device manufacturing processes.

Recently, we have been focusing on developing suitable materials to cope with the upcoming eco-friendly low-carbon era, and we are working day and night to play a pivotal role in future semiconductor device materials.

■ Wonik Materials is Korea's leading semiconductor specialty gas and materials company and is positioned as a key company in the domestic semiconductor supply chain. I would like to hear about Wonik Materials' efforts to ensure a stable supply of semiconductor materials.

From the perspective of semiconductor materials, supply chain issues are highlighted significantly.

To address supply chain issues, Wonik Materials is looking at it from three major perspectives.

First, since semiconductor fabs are distributed globally, distribution is ultimately necessary to supply products produced in Korea to each region where there is a fab.

Also, since it has to go through logistics, there is a considerable amount of risk involved, so the first strategy is a 'localization strategy' of sourcing and supplying locally.

The most recent localization strategy looks at two aspects: localization in China and localization in the United States.

The second is internalization.

We are approaching this from the perspective of 'internalization', where we resolve in-house issues that Wonik Materials previously imported, refined, and sold from overseas and supply them directly to our customers.

The last is supply line diversification.

It is a clear fact that Wonik Materials also has products that are manufactured by importing raw materials not only domestically but also from overseas, so if the supply of raw materials is not stable, there is a risk that it will not be able to stably supply the products that semiconductor chip makers need in a timely manner.

Therefore, we are exploring ventures to prepare for emergencies, including secondary, tertiary, and even quaternary suppliers, and currently, we have established stable emergency response measures for secondary, tertiary, and quaternary suppliers.

Now, Wonik Materials is approaching supply chain issues with a three-pronged strategy, ensuring sufficient reliability of supply from customers.I am reporting that it happened.

■ The semiconductor industry is currently facing a period of new transformation due to AI and other technologies. I am curious about how semiconductor material trends are changing during this period of transformation and how Wonik Materials is responding.

With the emergence of AI semiconductors, technological advancements are taking place at the nanoscale level, and the technology is changing even further.

In this situation, there is an area where materials must also follow, and the issue of patterning has recently emerged, requiring a new ultra-low temperature etching gas.

The second is an eco-friendly, low-carbon alternative material that can lower the global warming index.

Wonik Materials is also focusing on research and development with an emphasis on these two areas, and is reporting that meaningful results have been achieved as a result of its focus over the past year.

Although it is not yet at the mass production stage, a bridgehead has been established for early mass production, and it is currently receiving a lot of interest from customers.

■ The semiconductor market was difficult last year. 2024 is expected to be a difficult year, so I would like to hear about the semiconductor market outlook for this year and Wonik Materials' management strategy for this year.

Semiconductor prices are recovering, and as a result, our country's semiconductor market is improving, but this is only a gradual recovery from the price declines throughout 2023.

This year, we plan to focus on improving internal efficiency in preparation for increased volume.

We aim to build a system that can supply production volumes that could increase rapidly in a timely manner by improving productivity through efficiency.

In addition to creating management profits through cost and raw material reduction through internal efficiency, we plan to build a system that can share these effects with customers.

In addition, the company has been working to implement a smart factory for efficiency for the past three years, and meaningful results are now being demonstrated in each manufacturing site starting in 2023.

This year, we plan to accelerate this a little more, and we are currently focusing our efforts on ensuring that Wonik Materials can respond proactively and immediately when the semiconductor market recovers to its previous level or grows further.

■ I am curious about what Wonik Materials will focus on introducing at this year’s Semicon Korea.

Because gas companies have limitations in what they can display at exhibitions, we focused on areas that have been lacking in introduction so far.

We have been trying to highlight the achievements in research and development over the past 3-4 years, and are currently receiving attention through that.

The first is the development of new materials to replace existing gases for low carbon emissions.

Through research and development, we have completed the development of three or four candidate substances, and are working to mass-produce the products that have been developed.The exhibition mainly deals with the point that this is happening.

The second is the Precursor section.

Although the precursor division has a relatively small sales volume compared to the existing gas business, the company is focusing on R&D and trying to secure future precursors, and is actively promoting several candidate substances that it has developed.

The last is ESG response. We have been preparing for the past two years and have finally declared ESG management.

Wonik Materials is also focusing all of its management policies on sustainability to develop materials that do not harm the environment for a sustainable Earth, and is creating corresponding action items and plans to implement them in earnest starting this year.

■ Please say a word to e4ds news readers.

Hello e4ds news readers.

This is Han Jeong-wook, CEO of Wonik Materials.

As you all know, e4ds news is an internet news media that delivers the latest news, issues, and events in the semiconductor industry in a realistic and tangible way. I also had the honor of being able to interview them.

We will continue to grow as Wonik Materials to meet the interests of our readers.

Happy New Year. Thank you.