OCI Enters High-Value Semiconductor Material Business with Pitch for Isotropic Artificial Graphite
- OCI begins initial supply of pitch for isotropic artificial graphite, a key semiconductor material, to Ibiden Graphite Korea
- Strengthening market leadership and contributes to localization of pitch as the one of the world’s largest liquid pitch producers
- Plans to expand high-value artificial graphite pitch business by actively broadening customer base
- OCI aims to maximize profitability and secure long-term growth momentum by expanding semiconductor and advanced materials businesses
OCI is accelerating its expansion into the pitch market—used as a raw material for isotropic artificial graphite in semiconductor applications—as it broadens its portfolio of high-value-added semiconductor materials.
On July 15th, OCI announced that it has commenced the first delivery of pitch for isotropic artificial graphite to Ibiden Graphite Korea Co., Ltd., the only manufacturer of isotropic artificial graphite in Korea. This material is essential in semiconductor and advanced material industries.
Isotropic artificial graphite is a high-purity, heat-resistant material with excellent electrical conductivity and structural stability at high temperatures. It is widely used in industrial molds for melting and casting key materials. In specific, it is often used in the semiconductor industry, it serves as a crucible for melting polysilicon into ingots during wafer manufacturing, as well as a component for heating wafers during deposition processes. Additionally, it is a essential material in advanced defense applications such as missiles and fighter jets, and in nuclear power industry for use in neutron moderators.
As one of the world’s largest liquid pitch producers, OCI manufactures approximately 520,000 metric tons of liquid pitch annually in Korea and China and holds exclusive domestic production technology. While OCI’s pitch has traditionally been used as a binder in aluminum smelting electrodes, its applications are expanding as a raw material for isotropic artificial graphite — a material gaining prominence in semiconductors and other high-tech industries.
Until now, pitch used in isotropic artificial graphite has been fully dependent on imports. OCI's domestic production and supply marks a significant step in localizing this strategic material. By supplying Ibiden Graphite Korea, OCI aims to further solidify its leadership in the high-value pitch market.
The global market for isotropic artificial graphite is valued at approximately $3 billion (approximately KRW 4.2 trillion) and is expected to grow steadily alongside the recovery of the semiconductor industry and the expansion of the defense sector. This will likely drive continued demand for isotropic artificial graphite pitch. OCI plans to increase its pitch production through process optimization of existing facilities without additional investment, and to proactively expand its customer base in response to growing market needs.
Despite a challenging business environment, OCI is focusing on strengthening its competitiveness in high-value materials, especially in semiconductors and secondary batteries, to drive mid- to long-term growth. In the second half of 2024, OCI will begin its first-ever domestic supply of semiconductor-grade phosphoric acid to SK Hynix and plans to gradually expand capacity in line with growing demand. With the February 2025 acquisition of P&O Chemical shares and ongoing customer engagement efforts, OCI also expects to expand its semiconductor-grade hydrogen peroxide business.
Furthermore, the company is actively entering new high-value material businesses, including specialty materials for silicon anodes and expansion of conductive carbon black used in high-voltage cables.
OCI Vice Chairman Yoo-Shin Kim stated, "Starting with this supply to Ibiden, we will continue to expand our pitch business for semiconductor applications and diversify into other high-tech fields such as defense and small modular reactors (SMRs). We aim to increase the share of high-value added materials in our portfolio to maximize profitability and secure long-term growth momentum."