OCI Co. has achieved a significant milestone by becoming the first South Korean company to supply high-purity phosphoric acid to all major domestic semiconductor manufacturers, including SK Hynix Inc., Samsung Electronics Co., SK Keyfoundry Inc., and DB HiTek Co. This breakthrough was announced on Monday following OCI’s successful completion of SK Hynix’s rigorous quality tests and the subsequent delivery of its first batch of the material last month.
High-purity phosphoric acid is a critical component in the semiconductor wafer-etching process, essential for the production of dynamic random-access memory (DRAM), NAND flash chips, and various foundry operations. The contract with SK Hynix not only enhances OCI’s standing as South Korea’s leading producer of ultrapure phosphoric acid but also marks a significant expansion of its footprint in the semiconductor materials industry.
Since entering the phosphoric acid market in 2007, OCI has built an annual production capacity of 25,000 tons. The company plans to increase its output to meet the growing demand from the semiconductor sector, driven by the rising need for high-performance chips and the overall recovery of the chip market.
In addition to phosphoric acid, OCI produces ultrapure hydrogen peroxide, another vital semiconductor material. The company supplies this to Kioxia Holdings Corp., a major Japanese computer memory manufacturer. To further strengthen its position in the semiconductor and battery material sectors, OCI recently acquired a 51% stake in P&O Chemical Co. from POSCO Future M Co. for 50 billion won ($37.4 million). This acquisition is expected to boost OCI’s hydrogen peroxide production capacity by 50,000 tons, enhancing its competitiveness in the industry.
With this latest contract and strategic acquisitions, OCI is poised to solidify its leadership in the semiconductor materials market, capitalizing on the increasing demand for cutting-edge chip production technologies.
