According to several media reports, OCI Co., a leading South Korean fine chemical company, has secured a significant contract with SK Hynix Inc., a major global semiconductor manufacturer. OCI will supply high-purity phosphoric acid, a critical material used in the chip production process. This achievement marks a milestone for OCI as it becomes the first South Korean company to provide this essential component to all domestic semiconductor manufacturers.

OCI announced on Monday that it has been selected by SK Hynix as its first Korean supplier of high-purity phosphoric acid, following successful quality testing. This milestone underscores OCI's growing prominence in the semiconductor materials sector. The company has already delivered the initial batch of this crucial material, which plays a key role in semiconductor wafer etching processes.

As a result of this agreement, OCI has become the first supplier of high-purity phosphoric acid to all major semiconductor producers in South Korea, including Samsung Electronics Co., SK Keyfoundry Inc., and DB HiTek Co. This contract not only reinforces OCI’s position as a leading producer of ultrapure phosphoric acid in Korea but also enhances its influence and presence in the semiconductor material manufacturing industry.

OCI entered the phosphoric acid industry in 2007 and has since expanded to achieve an annual production capacity of 25,000 tons. To address the increasing demand for high-purity phosphoric acid, OCI is planning to significantly boost its production. This strategic expansion will enable the company to meet the growing needs of the semiconductor industry and solidify its position as a key player in the high-purity phosphoric acid market. The increased output is expected to support OCI's continued growth and enhance its role in supplying critical materials for advanced technological applications.

OCI Chief Executive Kim Yoo-shin emphasized that the company's expansion into the chip material business aims to address the rising demand from the semiconductor industry and strengthen its competitive edge in this sector. By scaling up its production of high-purity phosphoric acid, OCI is positioning itself to better serve semiconductor manufacturers and enhance its market presence, reflecting a strategic move to capitalize on industry growth and solidify its leadership in the semiconductor materials market.

Recently, OCI's Board of Directors approved the acquisition of P&O Chemical, a joint venture with POSCO Future M, during its meeting on August 26. Under the approved plan, OCI will enter into a share purchase agreement to acquire POSCO Future M's 51% stake in P&O Chemical for KRW 53.7 billion. Subsequently, P&O Chemical will be integrated as a subsidiary of OCI through a merger process.

Established in July 2020, P&O Chemical was formed to produce high-value materials from steelmaking byproducts, with OCI initially holding 49% and POSCO Future M holding 51%. The company operates a hydrogen peroxide plant with a 50,000 metric ton annual capacity, producing high-purity electronic grade hydrogen peroxide for semiconductor manufacturing.