SK Geocentric Enters IPA Market... Joint Venture Established with Tokuyama in Ulsan, Japan

High-Purity IPA Demand Expected to Grow 8% Annually
Approximately 120 Billion KRW Investment... Joint Venture Equity Split 50:50

[Asia Economy Reporter Hwang Yoon-joo] SK Geocentric is teaming up with Japanese company Tokuyama to make a full-scale entry into the high-purity isopropyl alcohol (IPA) market for semiconductors. This move is based on the expectation that demand for high-purity IPA used in semiconductor manufacturing will continue to grow.

On the 29th, SK Geocentric announced that it will jointly invest about 120 billion KRW with Japanese chemical specialist Tokuyama to establish a semiconductor-grade high-purity IPA joint venture in Ulsan with an annual production capacity of around 30,000 tons. The equity ratio will be 50:50, with completion and trial operation scheduled for 2023 and commercial production starting in 2024.

Under this collaboration, Tokuyama will provide related manufacturing technology, while SK Geocentric will supply raw materials, manage process operations, and handle marketing. Both companies expect to generate significant synergy in the domestic high-purity IPA market based on this partnership.

High-purity IPA is mainly used as a wafer cleaning material in semiconductor manufacturing processes and also serves as a cleaning agent for LCD production. In particular, the high-purity IPA market is expected to grow steadily at an average annual rate of about 8% within the semiconductor industry, driven by cutting-edge technological advancements such as 5G, IoT, AI (Artificial Intelligence), and DX (Digital Transformation).

In the domestic market, demand for high-purity IPA is projected to exceed supply starting in 2025, alongside factory expansions by Samsung Electronics and SK Hynix. Currently, only one company produces high-purity IPA domestically, and a very limited amount is imported from overseas.

Tokuyama is a global leading company recognized for its technological expertise by customers in Japan, Taiwan, and other regions through its proprietary integrated refining method. This integrated refining method involves conducting the entire process?from reaction and refining to shipment?at a single plant, which facilitates quality control.

With SK Geocentric’s stable supply of raw materials such as propylene and Tokuyama’s integrated high-purity IPA production facility technology, the joint venture will produce high-purity IPA with competitive quality and cost advantages. Notably, both companies plan to produce high-purity IPA using an eco-friendly process that applies waste and utility reduction facilities.

Choi An-seop, Head of Strategy at SK Geocentric, emphasized, "We will continue to develop high value-added products for future growth industries and steadily secure eco-friendly technologies to enhance the value that customers need together."

This content was produced with the assistance of AI translation services.