Tokuyama Corporation (Tokuyama) has announced the decision to establish a joint venture in Korea with SK Geo Centric Co., Ltd. (SKGC) for the purpose of manufacturing and selling high-purity isopropyl alcohol (IPA) for the electronics industry.

 

The joint venture to be named STAC Co Ltd will be established by July 2022 in Ulsan, Korea with an investment of $60 million. 

 

Due to the advances made in 5G, IoT, AI, DX and other technologies, the semiconductor market is expected to continue expanding over the medium to long term. As a result, demand for high-purity IPA used in the semiconductor manufacturing process is forecast to gradually increase. In addition, with the progress being made in the miniaturization of semiconductor devices, customer demands for higher quality and stable supply are ever increasing.

 

Manufactured by a unique, direct hydration method that features low concentrations of impurities, Tokuyama has to date marketed high-purity IPA, mainly in Japan, Taiwan, China and Southeast Asia. In this manner, the Company has maintained an unwavering commitment toward improving its technology in a bid to meet customer needs.

 

With the establishment of this joint venture, Tokuyama will build an integrated production system in Korea that extends from propylene, the raw material produced by SKGC, to high-purity IPA. By combining its strengths in high-purity IPA manufacturing technology and quality control capabilities with SKGC's strong presence in Korea, the Company will establish a new production and sales system to meet the needs of Korean customers.

 

This initiative is part of the Company’s efforts to transform its portfolio, a cornerstone of the Medium-Term Management Plan 2025. and will contribute to the growth of the electronics field, which is positioned as a growth business.