Pursuing Local Supply System Construction for Ultra-high Purity IPA for Semiconductors

LG Chem is moving to expand its ultra-high purity IPA (isopropyl alcohol) business, a core material for semiconductor processes. The company is building a local supply system in collaboration with a Chinese precision chemical company and strengthening its market strategy for AI semiconductors and advanced memory.

LG Chem announced on the 14th that it has signed a memorandum of understanding (MOU) with Jiangyin Jianghua Microelectronics Materials, a Chinese chemical materials company for semiconductors and displays, for business cooperation on ultra-high purity (HP) IPA for semiconductors.

Ultra-high purity IPA is a cleaning material used throughout semiconductor manufacturing processes. It is regarded as a high-value-added material requiring rigorous quality control, as even minute impurities can affect semiconductor yield and performance.

The key aspect of this agreement is to establish a supply system for HP-IPA for semiconductor cleaning by combining LG Chem's C3-IPA production capacity with Jianghua Wei's purification technology.

LG Chem is currently producing high-purity C3-IPA at an annual scale of 165,000 tons at its Yeosu plant in South Jeolla Province. Under the agreement, LG Chem will supply raw materials, which Jianghua Wei will then purify and produce as ultra-high purity IPA for semiconductors.

The two companies plan to pursue quality competitiveness enhancement and commercialization targeting customers in advanced semiconductor fields such as AI semiconductors and HBM (high bandwidth memory).

In the global semiconductor industry, establishing local supply chains for materials and equipment has emerged as an important task due to increasing demand for AI semiconductors and advanced memory.

LG Chem intends to expand business opportunities in the semiconductor cleaning materials market and strengthen its global customer responsiveness through this collaboration.

Kim Sang-min, Executive Vice President of LG Chem's Petrochemical Division, stated, "We will strengthen the foundation of our ultra-high purity materials business for semiconductors based on our high-quality raw material supply capabilities and explore new growth opportunities."