Lotte Chemical Group, centered on Lotte Chemical, will invest KRW 130 billion to expand its production base for core semiconductor materials to Pyeongtaek. The move aims to increase production capacity in response to surging semiconductor demand driven by artificial intelligence (AI).

Lotte Chemical Group affiliate Handeok Chemical announced on the 19th that it held a groundbreaking ceremony for a production plant for semiconductor and display developer TMAH in the Poseung District of Pyeongtaek, Gyeonggi Province. TMAH is a key material used in the “development process” that creates fine circuit patterns in semiconductor and display manufacturing. High-purity semiconductor developer is currently produced only in Korea, Japan, and the United States. Handeok Chemical is the world’s No. 1 manufacturer in this field. Lotte Chemical Group has established a vertically integrated system from key raw materials for TMAH to final products.


Handeok Chemical plans to invest a total of KRW 130 billion to build TMAH production facilities on a site of approximately 32,216㎡ within the Poseung District. In line with the schedule for domestic semiconductor manufacturers to expand their production facilities, Handeok Chemical also plans to gradually expand its production lines. With this, Handeok Chemical will secure a production base in the Seoul metropolitan area in addition to its existing Ulsan facility. By dualizing its production bases, the company aims to respond flexibly to supply and demand volatility in the semiconductor market and improve logistics efficiency to accelerate its supply responsiveness.

The groundbreaking ceremony was attended by Noh Joon-hyung, CEO of Lotte Corporation; Lee Young-joon, Head of Lotte Chemical Group; Jung Seung-won, CEO of Lotte Fine Chemical; and Ahn Hyo-taek, CEO of Handeok Chemical. In addition, about 70 participants, including Hiroshi Yokota, Chairman of Tokuyama Corporation of Japan; Kim Neung-sik, Commissioner of the Gyeonggi Free Economic Zone Authority; and Lee Sung-ho, Vice Mayor of Pyeongtaek, joined from Japanese partner companies and local governments.

In his congratulatory remarks, Group Head Lee stated, “The groundbreaking of the Pyeongtaek plant is a strategic investment to preemptively respond to future demand and an important stepping stone to strengthen Lotte Group’s advanced materials business,” adding, “By dualizing our production bases in Ulsan and Pyeongtaek, we expect to secure a stable supply system and reinforce the supply chain stability of the domestic semiconductor cluster.”

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