Dynamic Solution Begins Construction of Silica Slurry Plant, a Key Material for HBM and AI Semiconductors

Dynamic Solution is set to actively expand its materials business in response to the growth of next-generation AI semiconductor markets, such as high bandwidth memory (HBM).

On June 30, Dynamic Solution announced plans to build a new silica slurry production plant in Ulju-gun, Ulsan Metropolitan City. The company has been preparing for the new plant since last year. Earlier this year, it completed the purchase of the plant site and demolition of existing buildings, and on June 12, it finished submitting construction permit applications.

Funds recently secured through institutional investment will be used for this new plant construction. The company explained that, having proven the business potential, it has established a cooperative system that will enable ongoing investment in future capacity expansions as well.

The new production facility will be developed on a land area of 3,074 square meters, or approximately 930 pyeong. Construction is scheduled to begin in early July, and with most preliminary work already complete, the company expects the construction and production line setup to take about five months.

Silica slurry is an industrial material in which fine silica particles are dispersed in an organic solvent. It is used in semiconductor packaging and printed circuit board manufacturing to enhance insulation and suppress thermal expansion. It is considered a key material that improves heat resistance and product reliability, thereby affecting both semiconductor performance and manufacturing yield.

Interest in high-performance silica slurry is increasing, especially as SK hynix expands HBM production and Samsung Electronics sees rising demand for AI semiconductors. The domestic market currently relies on overseas suppliers for silica slurry, making it increasingly important to secure a stable domestic supply chain.

Dynamic Solution is preparing for product applications and mass production targeting major domestic companies such as LG, Doosan Electronics, and Hanwha Essential. It has been selected as a sample vendor for LG, having completed the first round of sample supply and testing. It is also proceeding with product application procedures with Doosan Electronics and Hanwha Essential following testing phases.

These client companies form part of the global semiconductor supply chain with companies such as Samsung Electronics, SK hynix, and Nvidia. Through its silica slurry business, Dynamic Solution expects to enter the value chain for high-performance semiconductor materials.

The company is expanding its business portfolio with a focus on healthcare robotics, brain-computer interface (BCI), and materials. In healthcare robotics, it is pursuing AI-based telemedicine and rehabilitation technologies, while the BCI business is being developed as a future growth sector utilizing semiconductor chips and robotic arm technology.

In particular, the materials business is being positioned as a core business pillar responsible for stable revenue and profit generation.

A representative from Dynamic Solution stated, "In addition to the Ulsan plant site we have already secured, we are also securing additional plant sites in Ulsan and Saemangeum to prepare for future capacity expansion. Through thorough preparations, we aim to begin initial deliveries to key clients after plant completion in the second half of this year, and to reflect product shipment revenue in our financial statements starting from the fourth quarter of this year."

The representative added, "By constructing the new plant, we will establish a stable domestic supply base for semiconductor materials that have previously depended on imports, and in the long term, build a supply system capable of meeting global demand."

With the establishment of the silica slurry production facility, Dynamic Solution is entering the HBM and AI semiconductor materials market and is expected to expand its presence in high-performance semiconductor supply chains both domestically and internationally.

This content was produced with the assistance of AI translation services.