NES Materials, a subsidiary of Namhae Chemical, has begun supplying Samsung with high-purity sulfuric acid (H2SO4) since last month, TheElec has learned.
The material is used in cleaning processes during chip production.
NES Materials was formed in 2021 and is a joint venture of Namhae Chemical, ENF, and Samsung C&T, each owning 70%, 20%, and 10% of the company. Namhae Chemical operates the factory and procures the raw material; ENF verifies quality; and Samsung C&T connects the company with buyers.
NES Materials began constructing the high-purity sulfuric acid factory in May 2022 and completed it last year. The factory has a capacity of 54,000 metric tonnes per year and uses the SO3 by-product from Namhae Chemical’s fertilizer production to produce the acid.
Samsung is procuring the acid from NES Materials earlier than expected as a competitor of the chemical firm has faced production issues, sources said.
The South Korean tech giant wants to diversify its supply chain for the material, which means NES Materials’ supply of the chipmaker is expected to steadily increase, they said.
Other South Korean producers of the acid include Korea Zinc and LSMnM.
A Namhae Chemical spokesperson has confirmed that NES Materials has begun supplying the acid to a customer.
Namhae Chemical is also preparing new materials that are used in tech production besides sulfuric acid, the sources also said.