- OCI to boost production capacity by 20% through debottlenecking in response to rising orders
- The company currently supplies major Korean chipmakers, including Samsung Electronics and SK hynix, and plans phased expansions in line with growing domestic and global demand
- Accelerating its growth in advanced materials through the expansion of semiconductor chemicals and next-generation battery materials
- Vice Chairman Yoo-Shin Kim stated, “We will drive long-term growth by strengthening our competitiveness in advanced materials for semiconductors and batteries.”
OCI, a key materials producer, announced plans to expand its production of semiconductor-grade phosphoric acid in the second half of the year, leveraging process optimization (debottlenecking) to increase capacity by 5,000 metric tons (MT). The expansion will boost the company’s annual capacity from 25,000 MT to 30,000 MT.
OCI is the market leader for semiconductor-grade phosphoric acid in Korea and currently supplies all major domestic semiconductor manufacturers—including Samsung Electronics, SK key foundry, and DB HiTek—backed by over 18 years of experience and technical know-how. In 2024, it became the first domestic supplier of phosphoric acid to SK hynix, further solidifying its leadership in the Korean market and reinforcing its position as a key semiconductor materials provider.
Phosphoric acid is a critical chemical used in the wafer etching process in semiconductor manufacturing. OCI’s product is a versatile material applicable to DRAM, NAND flash and foundry manufacturing processes, and its demand is expected to grow steadily with the recovery of the global semiconductor market.
The company has been expanding its client base steadily, securing both new customers such as SK hynix and increasing volumes to existing clients including DB HiTek. In addition, Samsung Electronics recently announced a KRW 23 trillion foundry supply deal with Tesla, raising expectations for expanded operations at its Taylor, Texas and domestic fabs starting in 2026. OCI had already been selected in 2023 as the phosphoric acid supplier for Samsung’s Taylor plant in Texas, and it is expected to benefit once the plant begins full-scale operations.
The newly announced capacity increase is scheduled for completion in the first half of 2026. The company also plans to pursue further phased expansions depending on customer demand and new business opportunities.
OCI also forecasts steady long-term revenue growth from hydrogen peroxide, another core semiconductor material produced by the company. OCI has been manufacturing hydrogen peroxide since 1979 and currently operates with an annual capacity of 125,000 tons. While legacy semiconductor production has slowed recently, downstream inventory depletion and a projected recovery in output at major clients like Samsung Electronics are expected to support gradual sales growth. The company is also focused on expanding its domestic and international customer base.
In addition, OCI has completed the mechanical construction of a new facility for producing a specialty material used in next-generation silicon anode for Li-ion battery. The silicon anode significantly improves both the energy efficiency and safety of conventional Li-ion batteries and the OCI’s specialty material is essential to the production of the advanced silicon anodes. OCI has signed a long-term supply agreement with UK-based silicon anode manufacturer Nexeon and aims to begin mass production in 2026.
Vice Chairman Yoo-Shin Kim said, “We will continue to grow our semiconductor materials businesses, including phosphoric acid and hydrogen peroxide, through proactive customer expansion. At the same time, we aim to scale new businesses that create synergy with our existing operations. By aligning with rising demand in semiconductors and next-generation batteries, we will strengthen our competitiveness and drive long-term growth in the advanced materials sector.” (End)