Lotte Chemical Group is establishing a key material production base in Pyeongtaek to expand the domestic semiconductor cluster and proactively respond to increasing global demand.
Handeok Chemical, a subsidiary of Lotte Chemical, held a groundbreaking ceremony on June 19 in the Pyeongtaek Poseung (BIX) area for a production facility for photoresist (TMAH) used in semiconductors and displays. TMAH is an essential material in the development of fine circuit patterns during semiconductor and display manufacturing processes.
The company plans to invest a total of 130 billion won to expand its photoresist production facilities on a site of approximately 32,216 square meters (9,746 pyeong) in Pyeongtaek. It will gradually increase production lines in line with the expansion schedules of its customers.
As the world's leading manufacturer of photoresist, Handeok Chemical was established in 1995 as a 50-50 joint venture between Lotte Fine Chemical and Japan's Tokuyama. Since 2020, both Lotte Chemical and Tokuyama have held equal shares in the company.
Handeok Chemical is the only domestic producer of photoresist, ensuring a stable supply chain by vertically integrating from raw materials to finished products alongside Lotte Fine Chemical. The company has also been designated as a national strategic technology commercialization facility, with high-purity photoresist currently produced only in South Korea, Taiwan, Japan, and the United States.
By diversifying its production bases in Ulsan and Pyeongtaek, Handeok Chemical aims to enhance its ability to respond to global supply fluctuations while improving logistics efficiency and supply response speed.
Industry analysts suggest that as profitability in the general petrochemical sector declines, Lotte Chemical Group is restructuring its business portfolio to focus on high-value advanced materials, including semiconductor and battery materials.
In his speech, Lee Young-jun, CEO of Lotte Chemical Group, stated, "The groundbreaking of the Pyeongtaek plant is a strategic investment to proactively respond to future demand and a crucial step in strengthening Lotte Group's advanced materials business. By diversifying production bases from Ulsan to Pyeongtaek, we will secure a stable supply chain and enhance the stability of the domestic semiconductor cluster's supply network."
The groundbreaking ceremony was attended by approximately 70 representatives from Lotte Group, Japanese partner companies, local governments, and corporate stakeholders, including Lee, Noh Jun-hyung, CEO of Lotte Holdings, Jeong Seung-won, CEO of Lotte Fine Chemical, Ahn Hyo-taek, CEO of Handeok Chemical, Hiroshi Yokota, Chairman of Tokuyama, Kim Neung-sik, head of the Gyeonggi Free Economic Zone Authority, and Lee Seong-ho, Deputy Mayor of Pyeongtaek.
* This article has been translated by AI.
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