LG Chem Ltd. collaborates with China's Jianghua on semiconductor cleaning materials... Establishes local supply chain

[Financial News] LG Chem Ltd. is partnering with a Chinese fine chemical materials company to establish a local supply system for ultra-high-purity isopropyl alcohol (IPA), a semiconductor cleaning material. LG Chem Ltd. announced on the 14th that it had signed a Memorandum of Understanding (MOU) with Jianghua, a leading Chinese fine chemical materials company, for business cooperation on ultra-high-purity (HP) IPA for semiconductors.
Jianghua produces and refines high-purity chemical materials for semiconductor and display processes and supplies them to major local semiconductor companies.
HP-IPA is an essential cleaning material used repeatedly throughout the entire semiconductor manufacturing process. It is a high-value material that requires strict quality control, as even minute impurities can affect semiconductor performance and yield.
HP-IPA uses C3-IPA as a raw material, for which LG Chem Ltd. has secured stable quality competitiveness based on a strict production and management system.
LG Chem Ltd. produces 165,000 tons of propylene (C3)-based, high-purity, high-quality C3-IPA annually at its Yeosu plant in South Jeolla Province. It is expanding supply to global markets, including North America and Asia, as well as to domestic semiconductor customers.
LG Chem Ltd. plans to establish a local supply system for HP-IPA used in semiconductor cleaning by combining its C3-IPA production capabilities with Jianghua's refining technology. Under this structure, LG Chem Ltd. supplies high-purity, high-quality C3-IPA, which Jianghua refines into HP-IPA for semiconductor cleaning.
The two companies will cooperate to strengthen the quality competitiveness and commercialize HP-IPA, aiming to supply advanced semiconductor customers, including those using AI semiconductors and high-bandwidth memory (HBM).
"Based on differentiated quality competitiveness and stable supply capabilities, we will strengthen our supply base for ultra-high-purity raw materials for semiconductors and seek new growth opportunities in the global semiconductor materials market," said Sangmin Kim, Executive Vice President and Head of LG Chem Ltd.'s Petrochemical Business Division.

[email protected] Kim Mi-hee Reporter