Sumitomo Chemical Co., Ltd. has been increasing the production capacity of high-purity chemicals for semiconductors. Specifically, the company is propelling its production at Iksan Works (Iksan City) of Dongwoo Fine-Chem Co., Ltd., Korea, a wholly owned subsidiary.

To meet strong customer demand, the company has decided to acquire new land in the same city and significantly expand the plant site. Moreover, the land acquisition due for the second half of FY2024 will double the current site area.

In addition, the company will also accelerate the development of next-generation businesses, such as advanced technologies and materials related to semiconductors and telecommunications. For that reason, the company will establish a new R&D center in the suburbs of Seoul. The center will begin operations in the second half of 2024 and will employ approximately 150 people.

With this move, the company aims to expand its semiconductor-related materials business. Most importantly, it will strengthen both its production and R&D systems in the country.

Global Expansion

Dongwoo Fine-Chem is a core subsidiary of the Sumitomo Chemical Group’s information electronic chemical business. It leads its global expansion into East Asia and the United States. Since its establishment in 1991, the company has built close relationships with major Korean ICT companies in both semiconductor-related materials and display materials. Thus, was able to gain a presence both in Japan and overseas as its business has grown.

In the high-purity chemical business for semiconductors, the company has innate strengths. Particularly, its quality assurance system based on ultra-high purification technology and advanced analytical technology has received high regard among manufacturers. Thus, making the company a leading company in the global market including Korea.

In addition to the already announced increase in production capacity at Iksan Works, the company plans to expand its business. Accordingly, it will export to neighboring countries. Also, it will respond quickly to growing demand through gradual capacity expansion at the newly acquired site. The new site is likely to reach its full operational status in FY2027.

Moreover, the company aims to increase its global supply capacity by 50% (compared to FY2023) in FY2030. This includes the capacity expansion at the new site in Texas in United States.

Interaction with External Parties

The new R&D center will rise in Pangyo Techno Valley in the suburbs of Seoul. As such, it serves as home to R&D centers of major Korean ICT companies, universities, and venture companies.

The company will reorganize some of these bases and assign them to the new development center, including the hiring of new employees. This will accelerate the development of next-generation businesses in the semiconductor and telecommunications fields by promoting interaction with external parties. What’s more, it will further strengthen its cooperation with Sumitomo Chemical’s research bases in Japan.

Heavy Investments in IC Materials

Sumitomo Chemical has positioned semiconductors, for which demand will grow over the medium to long term, as one of its growth areas. Thus, it has been actively investing in photoresists, semiconductor chemicals, compound semiconductors, and other areas.

Sumitomo Chemical will continue to contribute to the development of the semiconductor industry, which is indispensable for the spread of next-generation communication technologies. Moreover, it will also contribute to the realization of a smart society, including artificial intelligence (AI) and automated driving.

28 May 2024