LG Chem signs MOU with Zhanghwawei for HP IPA collaboration

LG Chem to supply raw material as Zhanghwawei handles mass production

Kim Sang-min (right), executive vice president and head of LG Chem's Petrochemical Business Division, poses for a photo with Shang Zhaocong, chairman of Zhanghwawei's Zhangjin factory, after signing a memorandum of understanding. [LG Chem]
Kim Sang-min (right), executive vice president and head of LG Chem's Petrochemical Business Division, poses for a photo with Shang Zhaocong, chairman of Zhanghwawei's Zhangjin factory, after signing a memorandum of understanding. [LG Chem]

LG Chem announced Monday that it has signed a memorandum of understanding with Zhanghwawei, a leading Chinese precision chemical materials company, to collaborate on the production of ultra-high-purity, or HP, isopropyl alcohol for semiconductor applications.

Zhanghwawei produces and refines high-purity chemical materials used in semiconductor and display manufacturing processes, supplying major chipmakers in China.

HP IPA is an essential cleaning material used repeatedly across all stages of semiconductor manufacturing. It is a high-value material that demands strict quality control, as even trace impurities can affect semiconductor performance and yield.

HP IPA is derived from C3-IPA, a material in which LG Chem has secured stable quality competitiveness. LG Chem produces propylene (C3)-based, high-purity C3-IPA at its factory in Yeosu, South Jeolla Province, at an annual capacity of 165,000 tons. The company has been expanding supply to global markets, including domestic semiconductor customers, North America and Asia.

The core of the agreement is to combine LG Chem's C3-IPA production capabilities with Zhanghwawei's refining technology to establish a local HP IPA supply chain for semiconductor cleaning applications. Under the arrangement, LG Chem will supply high-purity, high-quality C3-IPA, which Zhanghwawei will then refine into HP IPA for semiconductor cleaning use.

The two companies will work together to strengthen HP IPA's quality competitiveness and advance its commercialization, targeting customers in advanced semiconductor segments including AI chips and HBM. To that end, they plan to carry out a range of cooperative activities, including technology exchanges, information sharing and joint marketing.

"We will strengthen our foundation for supplying ultra-high-purity raw materials for semiconductors, backed by differentiated quality competitiveness and stable supply capabilities, while also pursuing new growth opportunities in the global semiconductor materials market," said Executive Vice President Kim Sang-min, head of LG Chem's Petrochemical Business Division.

Meanwhile, LG Chem plans to invest 15 trillion won ($11.1 billion) in research and development by 2035, nurturing semiconductor, mobility and robot materials as well as anticancer drugs as its core future businesses. Some 70 percent of that investment will be allocated to growth businesses including semiconductor, mobility and robot materials.


yeongdai@heraldcorp.com