What is the significance of Handuck Chemical being described as 'the only domestic producer of semiconductor developers' in South Korea?

Handuck Chemical is described as 'the only domestic producer of semiconductor developers' in South Korea, highlighting its unique and strategic role in the national semiconductor supply chain. This status underscores its critical function in ensuring self-reliance for high-purity TMAH — a key photoresist developer essential for advanced semiconductor manufacturing. By maintaining a vertically integrated structure with Lotte Fine Chemical — covering production from feedstock TMAC to finished TMAH — Handuck secures end-to-end domestic control over quality, supply continuity, and technology sovereignty. Furthermore, the company’s designation as a facility for commercializing national technologies reinforces its alignment with South Korea’s broader industrial policy goals, especially amid global supply chain vulnerabilities and export restrictions on critical materials. Its exclusive domestic position also means that disruptions to imports from Japan, Taiwan, or the US — the only other regions currently producing high-purity semiconductor developers — would not compromise South Korea’s foundry and memory chip production capabilities, provided Handuck’s capacity remains stable and scalable.

Why did Lotte Chemical and Tokuyama form a 50/50 joint venture (Handuck Chemical), and how does the new Pyeongtaek plant support their strategic objectives?

Lotte Chemical and Tokuyama Corp. formed a 50/50 joint venture — Handuck Chemical — to combine Lotte’s domestic market access, vertical integration capabilities, and government-aligned industrial strategy with Tokuyama’s advanced chemical process expertise and global technology leadership in electronic materials. The new $84.8 million TMAH plant in Pyeongtaek directly supports this partnership’s dual strategic objectives: first, to diversify production geography beyond Ulsan (where existing facilities are located) and thereby enhance supply chain resilience against localized risks such as natural disasters, logistical bottlenecks, or infrastructure constraints; second, to scale output in phased increments aligned precisely with client expansion schedules — particularly those of South Korea’s major semiconductor manufacturers clustered in nearby regions like Hwaseong and Cheonan. As stated by Lotte Chemical Group’s general representative Lee Young-jun, this geographic and operational flexibility strengthens the stability of the domestic semiconductor cluster’s material supply. Moreover, because Handuck is the sole South Korean producer of semiconductor developers and operates under a vertically integrated model with Lotte Fine Chemical, the Pyeongtaek plant doesn’t just add capacity — it institutionalizes redundancy, accelerates response time to demand surges, and positions the JV as a cornerstone supplier for national technology initiatives requiring sovereign control over critical fab inputs.

Lotte Chemical, Tokuyama JV to build $85M semiconductor materials plant in South Korea

Jun 22, 2026

Lotte Chemical's affiliate Handuck Chemical broke ground on an $85 million tetramethylammonium hydroxide (TMAH) plant in South Korea to secure stable semiconductor material supply chains. The project leverages vertical integration from feedstock to finished products.

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