LG Chem and Jianghua Micro to Build Semiconductor Solvent Chain in China
The partnership will produce ultra-high-purity isopropyl alcohol to support the manufacturing of AI chips and high-bandwidth memory.
LG Chem has signed a memorandum of understanding (MOU) with China's Jiangyin Jianghua Microelectronics Materials to cooperate on the production of high-purity isopropyl alcohol (HP-IPA). The partnership aims to establish a localized supply chain for semiconductor-grade cleaning agents within the Chinese market.
Under the terms of the agreement, LG Chem will provide high-purity C3-IPA, which Jianghua Micro will further purify into ultra-high-purity IPA. This specialized solvent is a critical cleaning agent used throughout the semiconductor manufacturing process to ensure that impurities do not compromise chip performance or production yields. LG Chem currently supports this pipeline with a production capacity of 165,000 tons of C3-IPA annually at its petrochemical complex in Yeosu, South Korea.
LG Chem already maintains a global footprint for C3-IPA, supplying semiconductor customers across North America, Korea, and various other Asian markets. By partnering with Jianghua Micro—a Chinese specialty chemical firm that already serves major domestic chipmakers—LG Chem can leverage local purification technology and established distribution networks to penetrate the Chinese materials market more effectively.
The collaboration specifically targets manufacturers of advanced semiconductors, with a focus on AI chips and high-bandwidth memory (HBM). In these high-end segments, purity is paramount; even microscopic contaminants can lead to significant yield losses. Securing a stable, local supply of ultra-high-purity cleaning agents is essential for the scaling of next-generation memory and processing units.
"We will strengthen our supply base for ultra-high-purity semiconductor materials based on our differentiated quality competitiveness and stable supply capabilities," said Kim Sang-min, a senior executive at LG Chem.
Industry observers will now watch for the transition from this MOU to full-scale commercial production within China. While the partnership secures the raw material flow from Yeosu to Jianghua Micro's facilities, the ultimate success of the venture depends on the ability to meet the stringent purity standards required by the world's most advanced AI chip foundries. This move signals a strategic effort to insulate the supply chain from geopolitical volatility while meeting the surging demand for AI-driven hardware.