Nurturing skilled R&D manpower the biggest challenge Through localization of the parts business in the semiconductor materials market, Dongjin is Korea's true leader in electronic materials and fine chemicals, and it has been leading this field from the earliest stage in the 1980s. Dongjin Semichem Co. Ltd. produces semiconductor and display use chemical materials and foaming agents, and has been spearheading the localization of semiconductor materials since the company developed semiconductor-use photoresists - materials laid over wafers (silicon crystals used to configure minute circuitry on semiconductors) - following the United States, Germany, and Japan in 1983 as the fourth country in the world, in order to enter into the semiconductor materials market with EMC. Thanks to the development of Dongjin Semichem's semiconductor materials, leading Korean semiconductor companies such as Samsung and LG have come to conquer global markets, according to Dongjin Semichem chairman & CEO Lee Boo-Sup, pointing out the significance of its localization in the semiconductor material field. Moreover, the company succeeded in accomplishing the first local development of photoresists in Korea. Lee explained: "With the completion of the Balan plant, located in Gyeonggi Province, Korea in 1995, Dongjin localized importation relied semiconductor materials, and simultaneously materialized international market capture by establishing a regional corporation in Taiwan in 2001". As a result of such localization efforts, today Dongjin Semichem provides advanced microelectronic materials and services for semiconductor and flat panel display applications such as photoresists (I-line resists, KrF resists, ArF resists), BARCs (Bottom Anti-Reflective Coatings), Thinners and strippers, Developers, CMP slurries, Epoxy Molding Compounds, and Melamine cleaning compounds. Regarding electronics materials, Lee elaborated: "Semiconductor ICs, which are the basic technology of the modern electric industry, have been materialized around since 1960 and are being used for many kinds of electronic parts." As customers request a smaller pattern of micro-circuit, these electronic parts are getting smaller, more high-functioning, less energy consuming, and the technology of lithography meets this need. R&D workforce of 160 Aware of such needs from an early stage, Dongjin Semichem supplies photoresists for lithography and associated products, which are used for manufacturing semiconductor ICs. Simply put, photoresists are chemicals used in creating the circuit patterns on chips. Lee commits himself to satisfying the needs of clients in order to respond to the latest semiconductor technology, lithography, by using its high molecular technology along with the company's unceasing R&D of high functioning and highquality photoresists. Regarding the process of the company's localization development, the chairman comments that securing skilled human resources to drive forward this development was the most difficult aspect, adding that Dongjin Semichem has been nurturing key research manpower by hiring graduate school students while providing them with scholarships. Lee pointed out that the biggest obstacle was recruitment of qualified workforce, adding, "Manpower supply and demand will be a key challenge determining the future of smaller companies and over the next 10 years it will depend on whether we will be able to nurture skilled manpower." Thanks to its continuous efforts the company has concentrated on securing R&D manpower, and Dongjin Semichem currently has an R&D workforce of about 160 people among the company's total employees numbering 330 workers. Dongjin Semichem Electronic Materials Division president Park Jung-Moon who sat in on the interview, noted that the firm's Balan factory can be seen as a big laboratory rather than a mere factory. On a par with prominent global companies Dongjin Semichem's semiconductor materials are on a par with leading global companies in terms of their quality level and the company has been dedicated to providing its clients with reliable quality goods, striving continuously to become a top-ranking company in these fields, Lee emphasized.. In the case of flat panel display materials as well, very recently the new industrial sectors such as PCs, monitors, digital cameras, mobile phones, and digital TVs are emphasizing the importance of the use of the Flat Panel Display materials. In order to meet these needs, Lee said Dongjin Semichem is developing and distributing the essential chemical materials for producing many kinds of displays such as TFT-LCD, PDP, and organic LED. At present, Dongjin Semichem is proactively taking part in medium and long-term national-policy technology development projects such as a liquid crystal preparation development, organic display thin film material development, and Resist development for EUVL (30~70nm). For the development of liquid crystal preparation, Dongjin Semichem is takes part in this project with Samsung Electronics, Samsung SDI, Konkuk University, and Busan University, to be completed by January 2008 with a development cost of 15.7 billion won. The organic display thin film material development, MOST's (Ministry of Science & Technology) 21st Century Frontier Project, was carried out by Dongjin Semichem, Myungji University, and Sooncheon University from Nov. 2002 through Mar. 2005 with a development cost of 2 billion won. With regard to Resists development (30~70nm) for EUVL, the Ministry of Commerce, Industry & Energy (MOCIE) has given the go-ahead for a next-generation new technology development project. Dongjin Semichem is planning to carry out this project in concert with Samsung Electronics as well as Hanyang University by July 2012 with a development cost of 9.5 billion won. Global competitive ability through total solutions As of 2004, Dongjin Semichem holds a market share of 7.7 percent in semiconductor material domestic market with 7 percent in P/R, 19.8 percent in Wet Chemical, 16 percent in CMP Slurry, 5.8 percent in EMC, and 0.8 percent in Etc. respectively. In the case of Display material domestic market, Dongjin Semichem holds its market share of 18.2 percent with 49 percent in P/R, 44.7 percent in Wet Chemical, 5.5 percent in Color Resists, and 0.1 percent in Etc on each. Dongjin Semichem's electronic material turnover has increased 49 percent and 7 percent respectively in display use material and semiconductor in 2005 by comparison with the preceding year thanks to the LCD industry (6, 7 generation) high speed growth, new development's market entry such as Color Resists and semiconductor market recovery as well as the business circle's line enlargement. Since 2002, Dongjin Semichem has been showing a stable profit and loss structure as the company's turnover and net profit are continuously on the increase. In terms of turnover, Dongjin Semichem has posted 152.84 bil. won in 2002, 178.94 bil. won in 2003, 220.35 bil. won in 2004, and 255 bil. won (estimate) this year. In the case of net profit too, the company has shown an increasingly upward trend by posting 554 million won in 2002, 1.22 bil. won in 2003, 7. 92 bil. won in 2004, and 10.8 bil. won (estimate) this year. Chairman Lee concluded the interview by stressing: "Dongjin Semichem will do its best to secure visible leadership in the fine chemical industry by 2010 by means of contribution to domestic fine-chemical industry and securing global competitive ability through the total solution."