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Chemicals manufacturer LCY is ready to support American TSMC with local production
The largest contract manufacturer of semiconductor components TSMC announced last year its intention to build a leading enterprise for the production of 5nm products in the United States. Obviously, without the development of related industries, it will not be able to function, but the chemical supplier LCY Chemical recently expressed its readiness to build a new plant in Arizona that will supply TSMC products.
Image source: LCY Chemical
LCY Chemical CEO Vincent Liu shared these intentions in an interview with Nikkei Asian Review. According to him, “the world’s leading economies have realized the need to localize the supply chain for the needs of the semiconductor industry,” and therefore the demand for chemicals used in lithographic production will grow. LCY is a manufacturer of isopropyl alcohol, which is used in lithography for cleaning silicon wafers and processing equipment.
The construction of a plant in Arizona for its production will take about two years. A specific action plan will be approved this year after agreement with the US and Taiwan authorities. It takes 45 days to ship chemicals from Taiwan to the US, and steps have to be taken to ensure chemical stability. The emergence of local production in this sense will solve some of the problems with logistics.
Other partners of TSMC also expressed interest in their participation in the creation of the infrastructure necessary for the operation of the American enterprise. The company is negotiating to expand the list of partners involved in this project. LCY’s own enterprises are mainly concentrated in Taiwan, but at the same time the company has production facilities in Canada, China and Qatar. US LCY will be equipped with state-of-the-art chemical purification and recycling systems to minimize environmental impact.
Since 20221, the company has tripled the volume of isopropyl alcohol production required in the semiconductor industry. By the middle of this decade, the production of isopropyl alcohol will be increased three times more. The proceeds from the sale of this type of product should also increase proportionally.