POSCO Achieves Localization of Production Facilities and Technology for Semiconductor Rare Gas 'Neon'

First Domestic Complete Localization of Neon (Ne) Production Facilities and Technology

On the 12th, Gwangyang Steelworks Held the 'Neon Production Facility Completion and Shipment Ceremony'

[Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik] POSCO has localized the production facilities and technology for neon (Ne), a rare gas used in semiconductors, for the first time in Korea and successfully shipped its first product.

On the 12th, POSCO held a 'Neon Production Facility Completion and Shipment Ceremony' at the oxygen plant of Gwangyang Steelworks, attended by Yoo Byung-ok, head of POSCO Industrial Gas and Hydrogen Business Division, Lee Jin-soo, head of Gwangyang Steelworks, and Yoo Won-yang, CEO of TEMC.

At the completion ceremony, Yoo Byung-ok, head of POSCO Industrial Gas and Hydrogen Business Division, said, "We are very proud to have achieved complete localization of neon, a long-standing challenge in the industrial gas market, through cooperation with the domestic small and medium-sized enterprise TEMC," adding, "Through ESG management that coexists with small and medium-sized enterprises, we have completely eliminated technological dependence on foreign countries for rare gases and contributed to stabilizing the domestic supply chain."

With the recent rapid growth of the semiconductor market, the demand for rare gases such as neon (Ne), xenon (Xe), and krypton (Kr), which are essential for semiconductor production, is also sharply increasing.

The industry expects the domestic rare gas market, which was about 160 billion KRW in 2020, to expand to about 280 billion KRW in 2023, growing at an average annual rate of about 20%. However, the domestic semiconductor industry currently relies 100% on imports for rare gases.

Among them, neon is a rare gas that accounts for only 0.00182% of the air and is one of the raw materials for excimer laser gas** used in the semiconductor photolithography process*. Although attempts at localization were made in the past due to price surges and supply shortages caused by trade disputes, development relied on foreign technology, and production was eventually halted, leading to full importation of current demand.

POSCO has been promoting complete localization of neon production since the end of 2019 in cooperation with TEMC, a specialized company in semiconductor specialty gases, over about two years.

Utilizing the large air separation units used for gas production in steelmaking processes, POSCO developed Korea's first neon production facility independently based on the technology of the oxygen plant at Gwangyang Steelworks and TEMC.

Furthermore, TEMC refined the extracted neon with proprietary technology and completed the full process localization up to the production of the finished product, excimer laser gas.

The newly completed facility can produce about 22,000 Nm3 (normal cubic meters) of high-purity neon annually, which is expected to meet about 16% of domestic demand. POSCO completed product quality evaluation through trial operation at the end of last year, completed the facility this year, and has started full-scale commercial production.

POSCO has newly established neon production facilities and supply systems by utilizing existing facilities and TEMC's technology, and TEMC has received full compensation for its initial investment as an incentive for successful project completion and secured long-term purchase rights for neon produced by POSCO.

Meanwhile, POSCO is fostering its industrial gas business as a new growth engine aligned with the company's ESG management, including promoting research and development of eco-friendly gas manufacturing technology for semiconductors last year.

In the future, POSCO plans to further strengthen the domestic neon supply chain by expanding neon production facilities and develop production technologies for xenon and krypton, which are also 100% import-dependent, through collaboration with small and medium-sized enterprises to establish a win-win model in the domestic industrial gas market.

Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik hss79@asiae.co.kr

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