Kolon Industries Increases Production of Key AI Semiconductor Material with Gimcheon Plant Expansion

Production Line Expansion Completed at Gimcheon Plant 2

Meeting Demand for Low Dielectric Materials for AI and 6G

Annual Sales Expected to Reach 200 Billion Won with Full-Scale Production

Kolon Industries is expanding its production capacity for modified polyphenylene oxide (mPPO), a low dielectric material, to meet the growing demand from the artificial intelligence (AI) and semiconductor markets.

Kolon Industries announced on September 9 that it had completed the expansion of its mPPO production line at the Gimcheon Plant 2 in North Gyeongsang Province on September 8, and held a completion ceremony.

Kolon Industries held a completion ceremony for the mPPO production line at the Gimcheon Plant 2 on the 8th. The photo shows officials cutting a ribbon. From the sixth person from the left are Seong Heo, President of Kolon Industries, Nakho Bae, Mayor of Gimcheon, Segil Oh, Chairman of Gimcheon City Council, and Hanguk Lee, CEO of Kolon Life Science. Kolon Industries

mPPO is a low dielectric material used in copper clad laminates (CCL) for semiconductor printed circuit boards (PCBs) to reduce electrical signal loss. For products that require rapid processing of large volumes of data, such as AI accelerators or 6G communication devices, minimizing signal loss is especially important. According to the company, mPPO offers low dielectric performance approximately three to five times better than epoxy resin used for the same purpose.

Kolon Industries completed the installation of its new production facilities in the second quarter of this year, obtained the necessary permits, and began trial operations, with full-scale production commencing in the second half of the year. All current output is supplied to global CCL manufacturers, and the company plans to gradually increase production volume through the end of the year.

The company expects that once mass production is fully under way following the completion of trial runs, annual sales revenue from the mPPO product line could reach approximately 200 billion won.

Huh Sung, President of Kolon Industries, stated, “This expansion is a turning point that marks the full-scale growth phase for our mPPO business. Based on our differentiated technology and quality competitiveness, we will foster our next-generation electronic materials business as a new growth engine.”

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