SK Materials (CEO Lee Yong-wook), a materials technology specialist, is seeking opportunities to jointly advance into North America with Japanese comprehensive materials company Showa Denko.

SK Materials and Showa Denko signed a business agreement for 'review of joint entry into North America for semiconductor materials' at Showa Denko's headquarters in Japan on the 29th.

△Amid expectations that semiconductor usage will rapidly increase centered on AI/data centers △electric vehicles/autonomous driving △5G/wireless communications, McKinsey recently forecasted that “the global semiconductor industry will steadily grow over the next 10 years, growing from approximately USD 600 billion in 2021 to USD 1 trillion in 2030.”

Accordingly, demand for materials is expected to continue to increase.

In addition, the importance of securing a stable supply chain for materials is increasing due to uncertain international situations such as the Russia-Ukraine War and logistics disruptions caused by COVID-19.

In this situation, the United States is strengthening its domestic manufacturing capacity for advanced technologies such as semiconductors.The semiconductor materials industry is also actively considering localizing its business in the United States, as the country is providing full support by offering benefits such as expanded subsidies and tax reductions.

SK Materials and Showa Denko established a joint venture, SK Showa Denko, in Yeongju-si in 2017 and are producing etching gas (monofluoromethane, CH3F) for 3D NAND, maintaining the No. 1 global market share.

In addition, a mass production plant is under construction to domestically produce the next-generation essential etching gas (hydrogen bromide, HBr) used in the production of memory semiconductors, and is scheduled for completion in July.

Based on these successful examples of cooperation in Korea, the two companies plan to quickly seize various business opportunities in North America based on trust and technological prowess and seek greater growth. Through this agreement, they plan to jointly review the optimal business model and investment economics for semiconductor special gas materials.

SK Materials President Lee Yong-wook said, “I am pleased that this business agreement will provide an opportunity for in-depth discussions on the direction of our North American business, based on the influence of SK Materials and Showa Denko within the semiconductor materials industry and their favorable market outlook.”

Yamamasu, head of the Information & Electronic Chemicals Business Unit of Showa Denko, said, “Based on the trust and excellent technological prowess that both companies have built up together over the years, we will do our best to discover a business model that is a win-win for both Showa Denko and SK Materials through a thorough review as soon as possible.”

Meanwhile, Showa Denko possesses the original technology for fluorine-based special gases and has a global sales network including Asia, North America, Europe, and China, including Korea. In addition, in 2019, the company acquired Hitachi Chemicals, strengthening its position as a global integrated materials company.

SK Materials is the world's leading supplier of special gases used in semiconductor cleaning and deposition processes, and is playing a pivotal role in securing a stable supply chain by taking the lead in the domestic production of cutting-edge materials such as high-purity hydrogen fluoride and photoresist.