The South Korean company said Monday that it will ship propylene-based isopropyl alcohol from its Yeosu plant, which produces about 165,000 tons a year.
Partner Jiangyin Jianghua Microelectronics Materials is to refine it into semiconductor-grade isopropyl alcohol (IPA) for Chinese fabs.
Chip fabrication draws on the solvent repeatedly, and trace impurities can erode yields. The two companies will court customers making artificial intelligence chips and high-bandwidth memory.
"We will strengthen our base for supplying ultra-high-purity raw materials for semiconductors and seek new growth opportunities in the global semiconductor materials market," said Kim Sang-min, head of LG Chem's petrochemicals business.
LG Chem is steering that business toward specialty products as Chinese oversupply grinds down margins on commodity plastics.
Chief Financial Officer Cha Dong-seok told an earnings call on July 31 that high-value applications including semiconductor-grade IPA should account for more than 25 percent of revenue by 2030, from about 10 percent this year.
AJP Takeaways
- LG Chem disclosed on Sept. 14, 2026 a memorandum of understanding with China's Jiangyin Jianghua Microelectronics Materials to build a local supply chain for ultra-high-purity isopropyl alcohol, a cleaning material used throughout semiconductor manufacturing.
- LG Chem produces about 165,000 tons a year of propylene-based isopropyl alcohol at its Yeosu plant and will supply it to Jianghua for further refining, targeting Chinese customers making AI chips and high-bandwidth memory.
- The Ministry of Trade, Industry and Resources has asked domestic producers to cut naphtha-fed cracker capacity by 2.7 million to 3.7 million tons a year, and LG Chem submitted its restructuring plan to the government in December 2025.
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