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Mitsubishi Gas Chemical to build chip cleaning agent fab in China

Global demand for semiconductors grows for 5G networks

Mitsubishi Gas Chemical is the leader in the global market for superpure hydrogen peroxide, with a share of about 50%.

TOKYO -- Mitsubishi Gas Chemical will construct a new plant in China that will make cleaning agents for semiconductors to meet growing demand and solidify its top position in the global market.

Chip cleaning agents are used to remove fine particles produced in the chipmaking process. Mitsubishi Gas Chemical is the global market leader, with a share of about 50%.

Demand for semiconductors has been strong worldwide in recent years, largely due to the rollout of 5G networks and the growth of the Internet of Things, or internet-connected devices. By strengthening its product supply system, Mitsubishi Gas Chemical hopes to cash in on this expanding demand.

The company plans to put the new plant into operation as early as the first half of 2022 to turn out superpure hydrogen peroxide. It has not disclosed how much it will spend on the new plant.

Superpure hydrogen peroxide is made by increasing the purity of ordinary hydrogen peroxide, which is commonly used as a disinfectant. As a cleaning agent in chip manufacturing, superpure hydrogen peroxide is used to remove fine particles without damaging the delicate microscopic circuitry on the chips. It is also used in the process of polishing and etching.

Mitsubishi Gas Chemical's new plant in China is expected to have an annual capacity of 90,000 tons. The company hopes to capitalize on demand in the country, where the semiconductor industry is growing.

Mitsubishi Gas Chemical already makes superpure hydrogen peroxide in Japan, South Korea, Taiwan, the U.S. and Singapore. The new plant in China will boost the company's global annual capacity by 16% to 644,000 tons. The company says it controls about 50% of the global superpure hydrogen peroxide market.

It also plans to bring a new raw material plant online in Taiwan as early as 2023 and is working to strengthen its supply network by moving ahead with plans to establish an integrated manufacturing system on the island.

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