SK Gen Centric and Tokuyama said on Wednesday that the pair will form a joint venture to produce isopropyl alcohol (IPA).
IPA used in wafer fabrication and the production of liquid crystal display as a cleaner.
The pair will invest 120 billion won for a 50/50 share of the joint venture, which will build a factory at Ulsan for the production of IPA. Commercial production will begin in 2024.
The venture will utilize Tokuyama’s manufacturing technology and SK Geo Centric’s raw material procurement and process management competencies, the companies said.
Demand for high-purity IPA is expected to exceed supply from Samsung and SK Hynix’ expansion of their chip-making facilities, SK Geo Centric said.
The market for IPA is expected to grow 8% per year due to this high demand, the company added.