Key Takeaways: LG Chem begins mass supply of semiconductor strippers to Amkor Technology. The customized stripper cuts photoresist removal time by about 50% versus existing products. The deal marks LG Chem's first entry into the semiconductor stripper market as it expands its materials business.
LG Chem's first semiconductor stripper product cuts photoresist removal time by about 50% versus existing products, giving the South Korean chemicals giant a foothold in a market tied to AI-driven advanced packaging demand.
LG Chem said July 16 it has begun mass production and supply of semiconductor strippers to Amkor Technology, the global leader in outsourced semiconductor assembly and test, marking the company's first entry into the semiconductor materials market. The customized stripper reduces the time required to remove photoresist and process residue by approximately 50% compared with existing products, improving manufacturing efficiency for advanced packaging lines.
"Through our collaboration with Amkor, a world-class semiconductor packaging and testing company, we will further strengthen our competitiveness in delivering customized materials optimized for customers' manufacturing processes," Kim Dong Choon, chief executive officer of LG Chem, said.
A semiconductor stripper is a critical process chemical used to remove photoresist and residue left on substrates after circuit patterning. As chip features shrink to 3nm and below, residue removal performance directly affects manufacturing yield and reliability. LG Chem entered the segment by adapting technology from its display stripper business, passing Amkor's qualification process on its first attempt. The global polymers for photoresists market is projected to grow at a 6.2% compound annual rate through 2035, according to IndexBox, with advanced packaging — Amkor's core business — accounting for 18% of photoresist polymer demand and representing the fastest-growing end-use segment.
The Amkor deal is part of a broader push by LG Chem to more than double the size of its electronics materials business. The company is expanding its semiconductor packaging materials portfolio — including copper-clad laminates, die attach films, and photo imageable dielectric — while accelerating its cathode materials business. Earlier this year, LG Chem announced a 15 trillion won ($10.8 billion) research and development investment plan through 2035 to strengthen its long-term growth foundation across advanced materials.
The Advanced Packaging Opportunity
Demand for advanced process materials is rising as artificial intelligence investments and high-bandwidth memory production drive expansion of 2.5D and 3D packaging technologies. Amkor, which competes with ASE Technology and JCET in the OSAT market, is a key supplier to leading chipmakers including TSMC and Samsung. The customized stripper supplied to Amkor was optimized for the company's new production line, suggesting the product could be scaled to additional fabs.
LG Chem's entry pits it against established Japanese and US suppliers including JSR Corp., Tokyo Ohka Kogyo, Shin-Etsu Chemical, and DuPont Electronics & Industrial, which together control roughly 65% of global photoresist polymer capacity, per IndexBox. The top five producers are concentrated in Japan, South Korea, and the US, creating strategic dependencies for downstream formulators. LG Chem's existing relationship with Amkor — and its ability to customize process chemicals — could help it win additional OSAT customers facing 18- to 36-month qualification cycles for new polymer grades.
Investment Implications
LG Chem's advanced materials business posted revenue below 1 trillion won for three consecutive quarters through Q1, with operating losses of 50 billion won in Q4 and 43 billion won in Q1. Securities analysts expect a return to profitability in the second quarter, supported by higher cathode material shipments to Toyota and improving average selling prices. The semiconductor stripper business, while early stage, addresses a higher-margin segment of the specialty chemicals market where purity specifications command premium pricing. High-purity grades now account for 48% of photoresist polymer market value and are expected to reach 55% by 2035 as foundries and memory producers adopt 3nm and 2nm processes, according to IndexBox.
This article is for informational purposes only and does not constitute investment advice.
