S.Korean firm to boost output of chipmaking chemical amid Japan curbs-report

Soulbrain Holdings

23/07/2019 09:43

SEOUL, July 23 (Reuters) - A South Korean maker of a
chemical that is used for producing  semiconductors will
increase output soon with a new plant coming on stream, helping
domestic chipmakers offset export curbs imposed by Japan, a
local media report said on Tuesday.
    The hydrogen fluoride factory operated by SoulBrain Co Ltd
 036830.KQ  will begin operations in September and the company
hopes to help replace imports from Japan, online business media
MoneyToday reported, citing an unnamed SoulBrain official.
    Japan earlier this month tightened curbs on exports of
high-tech materials used in semiconductors and smartphone
displays, threatening to disrupt the global supply of microchips
used by the likes of Apple Inc  APPL.O  and Huawei Technologies
Co.
    South Korean chipmaking giants Samsung Electronics
 005930.KS  and SK Hynix  000660.KS  rely on Japan for three key
materials although they source some hydrogen fluoride from China
and from South Korean firms.
    SoulBrain already supplies some hydrogen fluoride, used as
an etching gas when making chips, to Samsung and SK Hynix,
according to a company filing.
    An official at SoulBrain declined to comment on the report. 
    South Korea sourced 44% of hydrogen fluoride from Japan in
the first five months of the year, Korean industry data showed.
Japan produces about 70% of etching gas worldwide, according to
Japanese media.
    SoulBrain shares jumped as much as 26.5% on Tuesday to a
record high before closing up 6.5%.

 (Reporting by Sangmi Cha and Heekyong Yang; Additional
reporting by Hayoung Choi; Editing by Jack Kim and Muralikumar
Anantharaman)
 ((Sangmi.Cha@thomsonreuters.com; +82 2 3704 5646; Reuters
Messaging: sangmi.cha.thomsonreuters.com@reuters.net))