South Korea's POSCO signs agreement with Zhongtai Cryogenic for joint venture to produce gases for semiconductors
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Update time : 2024-01-09 09:54:53
South Korea's POSCO announced on December 27 that it has signed an agreement with Chinese company Zhongtai Cryogenic to establish a joint venture to produce gases for the semiconductor industry in South Korea, with an annual capacity of 130,000 standard cubic meters of high-purity inert gases.POSCO will hold a 75.1 percent stake in the joint venture, while Zhongtai Cryogenic will hold the remaining 24.9 percent.
The two sides plan to produce inert gases such as neon, xenon and krypton for chip production, which are widely used in annealing, photolithography, plasma etching and chemical vapor deposition, and are scheduled to come on stream in 2025. POSCO shares rose after the news was announced. In addition to its steel business, POSCO is also involved in battery raw materials and semiconductor materials, and the company also holds lithium resources in Argentina. At present, Korean chip makers lack local rare gas suppliers and rely heavily on the U.S., China, and Ukraine. The cooperation between POSCO and Zhongtai Cryogenic will help stabilize the supply of high-purity rare gases in Korea. As demand for semiconductors, including consumer electronics, automotive, industrial automation, and healthcare, grows across the board, so does the demand for gases for semiconductors.
Zhongtai Cryogenic is said to specialize in the development and manufacture of cryogenic equipment for the production of inert gases, such as gas purification, liquefaction, and air separation equipment.POSCO started production of crude neon gas in January 2022 and plans to start supplying crude neon and xenon gases in stages from 2024 onwards.
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