LG Chem will enter China’s semiconductor cleaning materials market. LG Chem said on Sept. 14 it signed a memorandum of understanding with Chinese fine chemical materials company Zhanghuawei to cooperate on an ultra-high-purity IPA business for semiconductors. IPA, isopropyl alcohol, is a cleaning material repeatedly used throughout the entire semiconductor manufacturing process. Even tiny impurities affect performance and yield, requiring strict quality control.

Zhanghuawei produces and purifies high-purity chemical materials for semiconductor and display processes and supplies them to major Chinese semiconductor companies. The feedstock for making ultra-high-purity IPA for semiconductor cleaning is C3-IPA. LG Chem produces propylene-based C3-IPA at its Yeosu plant in South Jeolla Province with annual capacity of 165,000 tons. It has expanded supplies to domestic semiconductor customers as well as North America and Asia.

The companies agreed to combine LG Chem’s production capabilities with Zhanghuawei’s purification technology. LG Chem will supply high-purity C3-IPA and Zhanghuawei will refine it into ultra-high-purity IPA for semiconductor cleaning. They aim to build a local supply system and secure customers for advanced semiconductors such as AI semiconductors and high-bandwidth memory, or HBM.

The companies plan to broaden cooperation through technical exchanges, information sharing and joint marketing. As localisation of semiconductor supply chains accelerates worldwide, demand for cleaning materials is expected to rise in AI semiconductors and advanced memory.

Sang-min Kim (김상민), head of LG Chem’s Petrochemicals Division and an executive vice president, said, "Based on differentiated quality competitiveness and stable supply capabilities, we will strengthen the foundation for supplying ultra-high-purity raw materials for semiconductors and also seek new growth opportunities in the global semiconductor materials market."