Semiconductor supply chain issues are highlighted, and localization, internalization, and supply diversification are needed to address them.
AI patterning issues require the development of cryogenic etching gases and low-carbon alternative materials.

[Editor's Note] Wonik Materials, a leading company in specialty gases for semiconductors, has maintained its position amidst escalating semiconductor supply chain issues and continues to achieve meaningful results through R&D even in rapidly changing environments, including AI. At SEMICON Korea 2024, held from January 31 to February 2, Wonik Materials captured the attention of many by presenting its research and development achievements related to the aforementioned topics. At this exhibition, we met with Han Jeong-wook, CEO of Wonik Materials, to discuss the semiconductor materials supply chain and 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 tirelessly day and night to play a pivotal role in future semiconductor device materials.

■ Wonik Materials is a leading domestic semiconductor specialty gas and materials company and is a key player in the domestic semiconductor supply chain. I'd 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 becoming a significant issue.

To address supply chain issues, Wonik Materials is looking at it from three main 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 there is a significant risk associated with having to go through logistics, the first strategy is a 'localization strategy' of sourcing and supplying locally.

The most recent localization strategy focuses on 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 are resolving the issues that Wonik Materials previously imported, refined, and sold from overseas and supplying them directly to our customers.

The last is supply line diversification.

It is a clear fact that Wonik Materials also imports raw materials from both domestic and overseas sources for its products. Therefore, if the supply of raw materials is not stable, there is a risk that it will not be able to provide the products needed by semiconductor chip manufacturers in a stable and timely manner.

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

Wonik Materials now approaches supply chain issues with a three-pronged strategy, ensuring sufficient supply reliability from customers.I am reporting that it was done.

The semiconductor industry is currently undergoing a period of transformation driven by AI and other technologies. I'm curious to see 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 transforming even further.

In this situation, materials are also essential to 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 its research and development efforts on these two areas, and reports 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 challenging year. I'd like to hear about the semiconductor market outlook for this year and Wonik Materials' management strategy for the year.

Semiconductor prices are recovering, which is improving the semiconductor market in Korea, but this is only a gradual recovery from the price declines that occurred throughout 2023.

This year, we plan to focus on improving internal efficiency to prepare for the increase in 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.

We aim to not only create management profits through cost and raw material reductions through internal efficiency improvements, but also establish a system that allows us to share these benefits with our customers.

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

This year, we aim to accelerate this even further, and we are currently focusing our efforts to ensure that Wonik Materials can respond proactively and immediately when the semiconductor market recovers to its previous level or grows further.

■ I'm curious about what Wonik Materials will be focusing on at this year's Semicon Korea.

Because gas companies have limitations on what they can display at exhibitions, we focused on areas that had previously been under-represented.

We've been trying to highlight our research and development achievements over the past three to four years, and we're currently getting a lot of attention for it.

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.This exhibition mainly deals with the fact that it is being done.

The second is the Precursor section.

Although the precursor division has a relatively small sales volume compared to the existing gas business, the company has focused on R&D and is seeking to secure a lead in future precursors. The company is developing several candidate substances and is actively promoting them.

The final step is ESG compliance. We've been preparing for the past two years, and we're finally declaring our commitment to ESG management.

Wonik Materials also aims to develop environmentally friendly materials for a sustainable Earth. To this end, it is focusing all of its management policies on sustainability and developing corresponding action items. Starting this year, it plans to implement these initiatives in earnest.

■ 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 outlet that delivers the latest news, issues, and events in the semiconductor industry in a realistic and engaging manner. 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.