May 29, 2026 /SemiMedia/ — South Korean chemical materials supplier PKC has announced plans to increase its annual production capacity for semiconductor-grade high-purity chlorine gas (Cl₂) by 50%, responding to rising demand from advanced memory and foundry manufacturing processes.

The expansion will raise annual capacity from approximately 1,400–1,500 metric tons to 2,100–2,200 metric tons. Industry sources said the investment, worth tens of billions of won, is closely aligned with Samsung Electronics’ growing requirements for advanced semiconductor production.

Demand for high-purity chlorine-based materials has increased as NAND Flash technology advances beyond 300-layer architectures and leading-edge logic manufacturing adopts more complex processes such as Gate-All-Around (GAA) transistors and FinFET technologies.

According to industry reports, Samsung has recently expanded its use of high-purity hydrogen chloride (HCl) across both NAND and foundry manufacturing operations. Since HCl is produced from chlorine gas, increasing HCl output requires additional Cl₂ production capacity.

The project also highlights South Korea’s efforts to strengthen domestic semiconductor material supply chains. Japanese chemical company Tosoh currently controls more than 70% of the global high-purity HCl market. A temporary disruption in shipments to South Korea earlier this year raised concerns about supply chain resilience for critical semiconductor materials.

PKC and Matheson, a subsidiary of Japan’s Taiyo Nippon Sanso, currently dominate South Korea’s high-purity chlorine market and supply products to both Samsung Electronics and SK hynix. PKC’s hydrogen chloride production line in Gunsan received Samsung certification in June last year.

As Korean semiconductor manufacturers continue expanding advanced-node and high-layer NAND production, demand for specialty gases is expected to remain strong.

PKC reported first-quarter revenue of 70.2 billion won, up 8.8% year-over-year, while operating profit rose more than 50% to 5 billion won. Revenue from its semiconductor specialty gas business increased 37.5%, becoming one of the company’s fastest-growing segments.

The company is targeting revenue growth of more than 10% this year while continuing its transition toward higher-value semiconductor materials and battery-related businesses.