Korea’s SK Geo Centric, Japan’s Tokuyama to set up IPA JV

South Korea’s leading petrochemical company SK Geo Centric Co. and Japan’s chemicals producer Tokuyama Corp. plan to found a joint venture for high-purity isopropyl alcohol (IPA), a key material for the semiconductor manufacturing process.

SK Geo Centric and Tokuyama decided to invest 120 billion won ($101.4 million) for the 50-50 JV in South Korea to produce 30,000 tons of high-purity IPA for semiconductors a year and sell, according to SK Innovation Co.'s subsidiary on Dec. 29.

South Korea is home to the world’s two largest memory chipmakers – Samsung Electronics Co. and SK Hynix Inc.

COMMERCIAL PRODUCTION FROM 2024

Both companies plan to establish STAC Co., the JV, in July 2022, based in Ulsan, and launch the JV’s business in July 2024, Tokuyama said last week. SK Geo, formerly known as SK Global Chemical Co., operates a petrochemical complex in the city, 415 kilometers southeast of Seoul.

The construction of a high-purity IPA plant is to be completed in 2023, SK Geo said. The factory is scheduled to start commercial operations in 2024.

Tokuyama will provide high-purity IPA manufacturing technology, while SK Geo will manage raw material procurement, production process and marketing.

High-purity IPA, a very evaporative solvent, is used for the cleaning and drying process of electronic devices including semiconductors and glass substrates.

The global market of high-purity IPA for the semiconductor industry is expected to increase 8% a year thanks to strong growth in high-tech sectors such as artificial intelligence (AI).

“By combining its strengths in high-purity IPA manufacturing technology and quality control capabilities with SKGC's strong presence in Korea, the Company will establish a new production and sales system to meet the needs of Korean customers,” Tokuyama said in a statement.

Write to Kyung-Min Kang at kkm1026@hankyung.com
Jongwoo Cheon edited this article.