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The information and electronic materials (I&EM) industry is a high-tech, fiercely competitive sector with immense market potential and strong profitability. As domestic petrochemical markets in countries like the United States, Japan, and South Korea become saturated, many chemical companies are shifting their focus toward the I&EM industry, which offers robust demand and long-term growth opportunities. This strategic move not only enhances operational efficiency but also opens up new avenues for sustainable development.
DuPont, one of the leading players in the global electronic materials market, ranks second behind Shin-Etsu Chemical of Japan. Its electronic materials division focuses on high-performance materials, microcircuit components, printed circuit board materials, and semiconductor assembly solutions. The company has been expanding its capabilities in polyimide films, particularly under the Kapton brand, which is used in flexible circuits, sensors, and bar code labels. In 2000, DuPont significantly expanded its polyimide film production, and more recently, it formed a joint venture with Toray Industries in Japan, boosting capacity by 60%.
DuPont's microcircuit materials business, which has been active for over four decades, specializes in resinates and supplies ceramic materials for conductors and resistors used by IBM. The Printed Circuit Materials Division provides essential bonding and processing agents for PCBs, while the semiconductor assembly materials segment includes cleaning chemicals, photopolymer resins, liquid polyimides, and colloidal silica-based slurries.
Over the past five years, DuPont has relocated some of its manufacturing operations to Asia, with most new investments concentrated there. The company is now focusing on large-area display technologies, such as flat panel displays, thin-film sensors, and plasma displays, positioning itself at the forefront of next-generation display innovation.
LG Chem has also recognized the growing importance of I&EM and has made it one of its core businesses. As traditional chemical and polymer segments saw declining profit margins, LG Chem redirected its efforts toward electronic materials. By 2008, this segment accounted for 28% of total sales, up from 16% in 2004. Polarizers have become a key product line, with projected annual sales reaching $1.4 billion by 2008. In the lithium battery market, LG Chem was ranked fifth globally last year, with a 7% market share, aiming to reach third place this year with a 20% share.
LG Chem has also made significant strides in organic light-emitting diodes (OLEDs), developing and producing several products. It invested $325 million in expanding its high-value electronic chemical material production bases, planning to quadruple polarizing film output. Additionally, the company produces 1,200 tons/year of photosensitizers and recently launched etching agents and stripper devices in South Korea.
R&D investment remains a priority for LG Chem. It is developing lithium-ion polymer batteries for hybrid electric vehicles and launching a new generation of ceria nanoparticle-based CMP slurries to enter the chemical mechanical planarization market. As a top OLED materials supplier, the company expects to use its materials in organic thin-film transistors and solar cells within two to three years.
Sumitomo Chemical has adopted a new strategy, aiming for 70% of its profits to come from life sciences and IT-related chemicals by 2010, with the remaining 30% from basic chemicals. The company is committed to becoming a global leader and sees IT and electronic chemicals as key growth drivers. It has strengthened its position in the flat panel and LCD display sectors, acquiring over 90% of shares in STI Technology Group in 2001. Dongwoo STI, established in 2003 in South Korea, became operational soon after.
Sumitomo also produces polarizing films for mobile phone screens and operates an integrated polarizing film facility in South Korea. It has expanded production in Taiwan and plans to invest further in large-screen LCD TV polarizing films in both South Korea and Taiwan.
Mitsui Chemicals is focusing on developing advanced optical materials, including functional elastomers, high-performance olefin polymers, plasma display optical filters, and lenses. It leads the high-growth plasma display optical filter market, with its Fitop product capturing 40% of the market. Mitsui was the first to commercialize multi-layer PDP optical filters and launched a production plant in Germany last year, with a combined capacity of 1.5 million units annually. The company plans to expand into China and North America.
Shin-Etsu Corporation, the world’s largest producer of PVC and silicon wafers, dominates the semiconductor photosensitive resin market, holding a third of the global share. It has increased production of 12-inch silicon wafers, raising monthly capacity at its Shirakawa plant from 75,000 to 100,000 units, with plans to reach 300,000 by the end of the year. Its subsidiary, Shin-Etsu Handtol, is building a 300mm silicon wafer facility in Vancouver and expanding its Japanese operations. The company aims to achieve a monthly production capacity of 700,000 300mm wafers by 2007.
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