Toyo Secures Contract for New TMAH Plant in South Korea

Toyo Engineering Korea Ltd., the South Korean subsidiary of Toyo Engineering Corporation, has secured a contract from HANTOK CHEMICALS CO., LTD. to construct a new Tetramethylammonium Hydroxide (TMAH) production facility in South Korea. The project represents another significant investment in the country's rapidly expanding semiconductor materials industry and aims to strengthen the domestic supply of a critical specialty chemical used in chip manufacturing.

HANTOK CHEMICALS is a joint venture equally owned by Japan's Tokuyama Corporation and South Korea's LOTTE Chemical Corporation. Under the agreement, Toyo Engineering Korea will undertake selected procurement activities, oversee construction, and provide commissioning support for the new facility. The plant is expected to be completed during fiscal year 2027.

Tetramethylammonium Hydroxide (TMAH) is an essential ultra-high-purity chemical widely used as a photoresist developer during semiconductor fabrication. As chip manufacturing technologies continue to evolve toward smaller process nodes and more advanced integrated circuits, demand for high-quality electronic chemicals such as TMAH has been rising steadily. Growing investments in semiconductor fabrication facilities across Asia have further accelerated the need for a reliable and stable supply of these materials.

To meet increasing market demand, HANTOK plans to double its existing TMAH production capacity through the construction of the new plant. The expansion is part of the company's broader strategy to establish a more resilient and secure supply chain for semiconductor chemicals while supporting customers in the electronics sector with stable product availability. Strengthening local manufacturing capacity is expected to reduce supply risks and improve responsiveness to the rapidly growing semiconductor industry.

Toyo Engineering Korea was selected for the project based on its extensive engineering expertise and successful track record in executing industrial projects throughout South Korea. The company has delivered numerous chemical and industrial facilities in the region and brings significant experience in project management, procurement, construction, and plant commissioning.

The investment also reflects the broader trend of increasing capital expenditure in semiconductor-related infrastructure as governments and private companies seek to enhance domestic manufacturing capabilities for strategic electronic materials. With semiconductor demand expected to remain robust over the coming years, the new TMAH production facility will help reinforce South Korea's position as a global hub for semiconductor manufacturing while ensuring a dependable supply of one of the industry's most critical process chemicals. Once operational, the plant is expected to improve production efficiency, strengthen supply security, and support future growth in advanced semiconductor manufacturing.

Impact on Product and Chemical Commodity Prices

The expansion of HANTOK’s TMAH production capacity will strengthen the supply of Tetramethylammonium Hydroxide (TMAH), ensuring greater product availability for semiconductor manufacturers. As additional production comes online by FY2027, supply reliability is expected to improve, reducing the risk of shortages for chip fabrication facilities. The increased capacity will support the growing demand for advanced semiconductor-grade TMAH driven by expanding semiconductor manufacturing. In the medium to long term, improved supply is likely to stabilize TMAH market conditions and ease pricing pressure caused by tight availability. The project will also enhance HANTOK’s ability to serve domestic and international semiconductor customers with consistent, high-purity TMAH supplies.