POSCO, South Korea’s prominent steel manufacturer, has achieved a significant milestone in the production of rare gases, a critical component in chip fabrication, indicating a step towards meeting the rising demands within the semiconductor sector.
Operating from its Gwangyang steel mill, POSCO has successfully localized the production of neon, a key rare gas essential in chip manufacturing, through collaboration with TEMC, a Korean entity, marking a significant achievement in neon localization within the industrial gas market.
The escalated demand for rare gases, including neon, xenon, and krypton, correlates with the rapid growth of South Korea’s semiconductor industry. Projections anticipate the market size for rare gases to potentially increase from 160 billion won in 2020 to an estimated 280 billion won ($235.33 million) by 2023, reflecting the industry’s expansion.
POSCO plans to commence mass production of neon gases from a newly established facility this year, boasting an annual capacity of 22,000-normal-cubic-meters. This substantial output is projected to cater to approximately 16 percent of the domestic demand, signifying a noteworthy contribution to industry needs.
Expanding its role in the industrial gas market, POSCO is diversifying by augmenting the supply of oxygen and nitrogen through its existing facilities. The company aims to foster a collaborative model in Korea’s industrial gas landscape, emphasizing the localization of rare gases like neon, xenon, and krypton through partnerships with smaller enterprises.
