Lotte Chemical Group is sharpening its position in advanced materials by strengthening its semiconductor supply chain, as affiliate Handuck Chemical breaks ground on a new tetramethylammonium hydroxide (TMAH) production plant in Korea's Pyeongtaek.

 

The facility, located in the Poseung (BIX) district of Gyeonggi Province, marks a major expansion move aimed at supporting surging global semiconductor demand and reinforcing Korea’s chip materials ecosystem. 

 

TMAH is a critical chemical used in the development process that defines ultra-fine circuit patterns in semiconductors and displays.

 

Handuck Chemical is investing about 130 billion won to build out production capacity on a 32,216-square-meter site, with plans to scale output in phases aligned with customer demand. The company will operate dual production bases in Ulsan and Pyeongtaek to improve supply stability, logistics efficiency, and responsiveness to market volatility.

 

At the core of the strategy is deeper vertical integration across the group’s materials chain—from Lotte Fine Chemical’s basic raw material (TMAC) through to Handuck Chemical’s finished developer product (TMAH). The company is positioning this structure as a safeguard for stable semiconductor supply in a highly sensitive global market.

 

Handuck Chemical, established in 1995 as a 50-50 joint venture between Lotte Fine Chemical and Japan’s Tokuyama, is the world’s leading producer of semiconductor developers and the only domestic supplier in South Korea. Since 2020, ownership has remained jointly held between Lotte Chemical and Tokuyama.

 

The company also holds designation under Korea’s national strategic technologies program, with high-purity semiconductor developers currently manufactured only in Korea, Taiwan, Japan, and the United States—underscoring the strategic weight of the investment.

 

Approximately 70 officials from Lotte Group, Tokuyama, local governments, and partner firms attended the groundbreaking ceremony.

 

Lotte Chemical Group General Representative Lee Young-jun said, "The groundbreaking of the Pyeongtaek plant is a strategic investment to proactively respond to future demand and a crucial stepping stone to strengthen Lotte Group’s advanced materials business,” adding, “We expect to enhance the stability of the domestic semiconductor cluster supply chain by securing a stable supply system through the diversification of production bases.”

 

Tokuyama Group Chairman Hiroshi Yokota remarked, "I am confident that this Pyeongtaek plant will contribute to the future development of the semiconductor industry by stably supplying high-quality materials."

 

Gyeonggi Free Economic Zone Authority President Kim Neung-sik also noted, “The groundbreaking of Handuck Chemical’s Pyeongtaek plant holds great significance as it marks the establishment of a metropolitan production base within the Gyeonggi Free Economic Zone by the nation’s only manufacturer of semiconductor developing solutions."

 

“We will spare no administrative support to ensure Handuck Chemical’s investment proceeds without any setbacks.”

 

The new facility is expected to strengthen Korea’s semiconductor materials resilience at a time of intensifying global supply chain competition.