Tokuyama affiliate Hantok Chemicals begins constructing a new Pyeongtaek plant, boosting TMAH capacity by 50% to support semiconductor growth.
Tokuyama Corporation has announced a major step toward strengthening its semiconductor materials business through the expansion of tetramethylammonium hydroxide (TMAH) production in South Korea. The company revealed that Hantok Chemicals Co., Ltd., an equity-method affiliate of Tokuyama, has officially commenced construction of a new manufacturing facility in Pyeongtaek, Republic of Korea. A groundbreaking ceremony was recently held to mark the beginning of the project, which is expected to play a significant role in meeting the growing global demand for semiconductor-grade chemicals.
The upcoming Pyeongtaek Plant will focus on the production of TMAH, a critical photoresist developer widely used in semiconductor fabrication processes. TMAH is an essential chemical utilized during photolithography, a key stage in semiconductor manufacturing where intricate circuit patterns are transferred onto silicon wafers. As semiconductor technologies continue to advance and chip production volumes increase, demand for high-purity TMAH has risen substantially across global electronics markets.
Hantok Chemicals is a long-established joint venture between Tokuyama Corporation and LOTTE Chemical Co., Ltd. Since its establishment, the company has been engaged in the production and distribution of photoresist developers from its manufacturing base in Ulsan, South Korea. Since beginning operations in 1995, Hantok has built a strong reputation as a reliable supplier of semiconductor process chemicals, serving both domestic and international customers in the electronics industry.
The decision to construct the new Pyeongtaek facility comes amid robust growth in the semiconductor sector, driven by increasing demand for advanced chips used in artificial intelligence, high-performance computing, automotive electronics, data centers, smartphones, and next-generation communication technologies. Industry forecasts indicate that the need for semiconductor-grade chemicals such as TMAH will continue to expand as chipmakers invest in more sophisticated manufacturing technologies and larger production capacities.
Through this investment, Hantok aims to significantly enhance its manufacturing capabilities. Once the new facility becomes operational, the company expects to increase its overall TMAH production capacity by approximately 50% compared with current levels. This substantial capacity expansion will enable Hantok to better support the requirements of semiconductor manufacturers while ensuring a stable and reliable supply of high-quality photoresist developers.
The new plant is also strategically positioned in Pyeongtaek, an important industrial and semiconductor hub in South Korea. The location provides proximity to major semiconductor manufacturing facilities and strengthens supply chain efficiency for customers operating in the region. By expanding its production footprint, Hantok seeks to reinforce its competitiveness in the rapidly evolving semiconductor materials market.
For Tokuyama, the project aligns with its broader strategy of expanding its specialty chemicals portfolio and enhancing its presence in the semiconductor materials value chain. The investment reflects the company's commitment to supporting technological innovation and addressing the growing needs of semiconductor producers worldwide.
Upon completion, the Pyeongtaek Plant is expected to contribute significantly to supply stability, improve responsiveness to customer demand, and strengthen Hantok’s position in the global semiconductor chemicals market. The expansion underscores the confidence of both Tokuyama and Hantok in the long-term growth prospects of the semiconductor industry and the increasing importance of high-purity process chemicals in advanced chip manufacturing.
Market Impact: The construction of Hantok Chemicals’ new Pyeongtaek plant is expected to have a positive long-term impact on the semiconductor chemicals market, particularly for Tetramethylammonium Hydroxide (TMAH), a critical photoresist developer used in semiconductor manufacturing. By increasing Hantok’s TMAH production capacity by 50%, the project will strengthen supply reliability for semiconductor manufacturers and support the growing demand generated by advanced chips used in AI, data centers, automotive electronics, and next-generation communication technologies.
From a market perspective, the expansion is likely to improve product availability and reduce the risk of supply disruptions in the Asia-Pacific semiconductor supply chain. The additional capacity will also enhance Hantok’s competitiveness against other global suppliers of electronic-grade chemicals.
Regarding chemical commodity prices tracked by ChemAnalyst, the immediate impact is expected to be limited because the new facility is still under construction and additional supply will only enter the market after commissioning. However, in the medium to long term, increased TMAH production capacity could exert downward pressure on TMAH prices by improving supply-demand balance. Demand growth from semiconductor manufacturing is likely to absorb a significant portion of the new output, which may prevent any sharp price decline.
Upstream feedstocks such as methanol, trimethylamine, and other electronic chemical intermediates are unlikely to experience substantial price changes solely due to this project. Overall, the announcement is expected to be mildly bearish for TMAH prices in the long run while supporting stable pricing and supply security across the semiconductor chemicals sector.
