OCI to supply semiconductor phosphoric acid to SK hynix

[Courtesy of OCI Co.]

South Korean polysilicon manufacturer OCI Co. announced on Monday that it has been selected as the supplier of semiconductor phosphoric acid to SK hynix Inc., the first among local semiconductor material manufacturers.

After passing SK hynix’s stringent quality tests, OCI received approval to supply its phosphoric acid products and held a ceremony on August 21 at its plant in Gunsan, North Jeolla Province, to commemorate the initial shipment.

Semiconductor phosphoric acid is a crucial material in the semiconductor manufacturing process, particularly in the etching of semiconductor wafers.

This process involves using liquid or gas-based etchants to selectively remove unwanted parts of the wafer, thereby creating intricate circuit patterns.

OCI’s semiconductor phosphoric acid is a versatile material used in all semiconductor processes, including DRAM, NAND flash, and foundry production.

With the growth of high-bandwidth memory (HBM) and the recovery of the semiconductor market, demand for this material is expected to rise steadily.

With this contract, OCI aims to solidify its position as the top supplier of semiconductor phosphoric acid in Korea and to strengthen its standing as a key player in the semiconductor materials industry. OCI, which entered the semiconductor phosphoric acid business in 2007, currently has an annual production capacity of 25,000 tons.

The company has previously supplied its products to major domestic semiconductor manufacturers, including Samsung Electronics Co., SK keyfoundry Inc., and DB HiTek Co.

With the addition of SK hynix as a new client, OCI is now the only company in Korea supplying phosphoric acid to all major domestic semiconductor manufacturers.

In response to the increased demand from both new and existing customers, OCI plans to gradually expand its semiconductor phosphoric acid production capacity.

The company also aims to contribute to the localization of semiconductor materials and the stabilization of the supply chain.

Furthermore, OCI anticipates future revenue growth in its hydrogen peroxide products, which are essential for the cleaning processes in semiconductor manufacturing. The company currently has an annual production capacity of 75,000 tons of hydrogen peroxide.

With its recent decision to acquire a stake in P&O Chemical Co., OCI has increased its hydrogen peroxide production capacity by 50,000 tons per year.

This expansion allows OCI to meet the rising demand, particularly following the completion of Kioxia Corp.’s new plant in Japan in July 2024, which can produce 25,000 wafers per month.