Dynamic Solution Breaks Ground on New Silica Slurry Plant in Ulsan, Targeting Semiconductor and Optical Cable Materials Market

Dynamic Solution is embarking on the construction of a high-purity silica slurry production facility, targeting applications in semiconductors and optical cables. Building upon its existing robotics business, the company is adding advanced materials as a new pillar and plans to expand its materials business with a focus on growth industries such as artificial intelligence (AI) data centers and high bandwidth memory (HBM).

Dynamic Solution announced on September 30 that it held a groundbreaking ceremony for its new silica slurry plant, an inorganic chemical materials facility, in Ulju-gun, Ulsan Metropolitan City on September 29. The event was attended by CEO Baek Myunghoon, Chief Strategy Officer (CSO) Yoo Cheolho, Chief Technology Officer (CTO) Lee Daegyeom, and officials responsible for investment attraction from the city of Ulsan. Congratulatory remarks and messages from the head of Ulju-gun were also delivered. The company is also planning to pursue a memorandum of understanding (MOU) with Ulsan City for administrative support and business cooperation in the future.

The new plant is scheduled for construction completion by the end of February 2027. Once construction is finished, the company plans to install production facilities, conduct test operations, and begin full-scale mass production that same year. The groundbreaking, initially scheduled for July, was pushed to September due to the complex permitting requirements and administrative procedures inherent to silica slurry production facilities, which are more stringent than those for general manufacturing plants.

The initial production capacity will be 500 tons annually. Depending on increased orders and client supply, this will be expanded to 1,000 to 1,500 tons per year. In the long term, the company aims to establish itself as a comprehensive materials production hub capable of producing over 3,000 tons per year, including not only silica but a wide range of inorganic materials.

The core product is high-purity silica slurry for use in semiconductors and optical cables. Silica slurry is a material in which fine silica particles are uniformly dispersed in a liquid and is used for semiconductor packaging, electronic substrates such as CCL and FCCL, and the cladding of optical cables. It enhances insulation and heat resistance, while suppressing thermal expansion.

Particularly, the company expects demand for these materials to increase alongside the growth of the HBM and high-performance computing (HPC) markets and the expansion of AI data center investments. According to the international semiconductor equipment and materials association (SEMI), the global semiconductor materials market reached a record high of $73.2 billion (around KRW 99.6 trillion) last year, up 6.8% from the previous year. The semiconductor packaging materials market also increased by 9.3% during the same period to $27.4 billion (about KRW 37.3 trillion).

Dynamic Solution also plans to expand its product line to include functional slurries for heat dissipation and insulation, using alumina and ceramics in addition to silica slurry. The company will establish a customized production system capable of adjusting particle size, viscosity, and solid content to meet clients’ specifications.

Planned application areas are also expanding to include heat dissipation sheets and gap fillers for thermal management in electronic components, displays, and automotive electronic parts. The company is currently pursuing supply and product application projects with major domestic corporations such as LG, Doosan, and Hanwha.

This new plant construction also aligns with the company’s efforts to restructure its business model. Dynamic Solution has been expanding from its original focus on rehabilitation and healthcare robots to include industrial robots, and is also fostering brain-computer interface (BCI) business as a next-generation growth driver. By adding an advanced materials business centered on silica slurry, the company is building a three-pillar structure of ‘Robotics, BCI, and Materials’.

While robotics and BCI are positioned as mid- to long-term growth drivers, the materials business aims to become a revenue generator in the near term. The company plans to secure a solid revenue base for the materials business by sequentially building production facilities, expanding its client base, and diversifying its product lines.

A Dynamic Solution official stated, “The materials business requires not only technological expertise, but also large-scale facility investment, strict quality control systems, and a range of certifications and permits, making it a typical high-entry-barrier industry where new players find it hard to enter in a short time. Having continuously prepared through technology development and building production infrastructure for market entry, the groundbreaking of this new plant marks a definitive starting point for translating our accumulated capabilities into mass production and revenue.”

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