Jaewon Industrial to supply key material for chip processing to Samsung

Storage Tanks (Jaewon Industrial & Yeosu Tank Terminal) [Image source: Jaewon Industrial]

Jaewon Industrial Co., a South Korean mid-sized petrochemical company, has independently developed a key material for semiconductor ultra-fine processing in which Korea has been fully dependent on Japanese imports, helping ease the instability in the country’s supply chain and stabilize production.

According to industry sources on Monday, Jaewon Industrial recently passed Samsung Electronics Co.’s quality test and proved the quality of its newly developed, high-purity, and environmentally-friendly propylene glycol methyl ether acetic acid (PGMEA). The quality test was a necessary step to become a supplier of Samsung Electronics.

PGMEA is a highly pure solvent used in the photoresist (PR) manufacturing process for various lithography techniques, including krypton fluoride (KrF), argon fluoride (ArF), and extreme ultraviolet (EUV).

The supply will begin in March, sources said.

Jaewon Industrial is the first Korean company capable of fully producing a key raw material for semiconductor processing that faced export restrictions from Japan in 2019. The export controls targeted materials essential for Korea’s semiconductor industry, creating supply chain challenges.

Jaewon Industrial’s success in obtaining final quality approval from Samsung Electronics is seen as a significant step towards resolving supply chain disruptions following the restrictions and ensuring reliable production for domestic chip and display manufacturers.

The solvent PGMEA, along with other materials such as hydrogen fluoride and polyimide fluoride, is one of the key materials for photoresist processing. The solvent plays a vital role in the manufacturing of electronic components such as semiconductors, LCDs, and OLEDs, as well as in the production of paints and adhesives.

Jaewon Industrial, established in 1987, specializes in producing cleaning agents for semiconductor and display processes, as well as various solvents for secondary battery manufacturing.

The company initiated the development of ultra-high purity PGMEA in 2018 and achieved a major breakthrough in 2022 by producing the first 99.999 percent (5N) grade ultra-high purity product in Korea.

The breakthrough is expected to reduce Korea’s imports of PGMEA from Japan by about 1 trillion won ($759 million) per year, with additional export benefits.

Jaewon Industrial aims to enhance the quality of ultra-high-purity PGMEA further, expanding its applications beyond photoresist materials to bottom anti-reflective coating (BARC) and other areas.