TOK completes KRW101 billion facility in South Korea to bolster semiconductor supply chain

TOK’s new facility in South Korea signals a deepening integration of the Japan-South Korea semiconductor supply chain. The investment strengthens its position in critical materials like photoresists and silicon wafers, directly supporting global chip manufacturing. From a technical standpoint, this move alleviates current supply bottlenecks, particularly benefiting TSMC and Samsung. However, geopolitical tensions are rising, especially within the U.S.-Japan-South Korea alliance, heightening scrutiny over material supply security. Companies face increasing compliance costs and risks from export controls. Competitors may accelerate capacity expansion in Southeast Asia or China Taiwan/ Taiwan, China to reduce exposure. Over the next 12 months, the global semiconductor materials market will undergo structural shifts, with regionalization becoming a key strategic priority for supply chain resilience.