South Korea ALD Precursors Market - Forecasts From 2025 To 2030

Description

South Korea ALD Precursors Market Size:

South Korea ALD Precursors Market is anticipated to expand at a high CAGR over the forecast period.

South Korea's ALD precursors market is shaped by a dynamic combination of technological advancements, robust industrial demand, and government-driven initiatives aimed at reinforcing the country's position as a global leader in high-tech manufacturing. ALD technology plays a critical role in semiconductor fabrication, energy storage, and renewable energy solutions, all of which are priority sectors for South Korea.

South Korea ALD Precursors Market Analysis

Growth Drivers

• Semiconductor Industry Demand: South Korea's semiconductor sector is one of the largest in the world, contributing substantially to global supply chains. Leading manufacturers like Samsung Electronics and SK Hynix are at the forefront of ALD technology adoption. ALD is integral for depositing thin films on semiconductor wafers, a process required for producing smaller, more efficient semiconductor devices. As South Korean companies push for advanced process nodes (sub-5nm), the demand for ALD precursors continues to increase.
• Government Initiatives: The South Korean government's K-Semiconductor Strategy, aimed at fostering domestic semiconductor manufacturing, has created a favorable environment for ALD precursor suppliers. This strategy, which includes substantial funding and research grants, is expected to boost the demand for ALD-related products, as these are crucial for developing next-generation chips and improving manufacturing efficiency.
• Renewable Energy Growth: South Korea has committed to enhancing its renewable energy capacity, with a special focus on solar power. ALD is utilized in the production of high-efficiency photovoltaic (PV) cells, where ultra-thin films are applied to enhance performance. The Green New Deal, a government-backed initiative promoting sustainable energy solutions, is driving growth in the solar energy market, thereby increasing demand for ALD precursors, particularly for solar panel coatings.
• Electric Vehicle (EV) Industry: The rise in electric vehicle production is another factor pushing demand for ALD precursors, especially for energy storage solutions like lithium-ion batteries. ALD is used to deposit conformal thin layers that improve battery performance and safety, making it essential for EV manufacturers. South Korea's support for EV adoption through regulatory frameworks and incentives is driving the increased demand for ALD-based applications in the automotive sector.
• Technological Advancements in ALD: The evolution of ALD technology itself is accelerating market growth. Innovations such as Plasma-Enhanced ALD (PE-ALD) allow for the deposition of thin films at lower temperatures, making them suitable for a wider range of materials, including flexible electronics and photovoltaic cells. Additionally, Roll-to-Roll ALD is enabling continuous, high-throughput deposition, a breakthrough for applications in solar energy and displays. These advances significantly increase the market requirement for ALD precursors.

Challenges and Opportunities

Challenges:

• Raw Material Sourcing: ALD precursor production depends on high-purity chemicals, many of which are sourced from limited global suppliers. Given South Korea’s reliance on imports for these raw materials, supply chain disruptions, such as geopolitical tensions or trade barriers, can lead to price volatility and uncertainty in precursor availability.
• Pricing Volatility: The prices of key ALD precursors such as hafnium, titanium, and aluminum are subject to fluctuations in global markets. The recent volatility in the global supply chain, coupled with increasing demand, places pressure on manufacturers, potentially increasing costs for end-users and curbing demand in price-sensitive applications.

Opportunities:

• Local Manufacturing Expansion: South Korean players like SK Materials and Soulbrain are expanding their ALD precursor production capacity, positioning themselves as key suppliers both domestically and globally. As the country aims to become more self-sufficient in its precursor supply, local manufacturing capabilities are likely to increase, driving more stable pricing and availability.
• Cross-Sector Collaboration: Partnerships between semiconductor manufacturers and renewable energy companies present an opportunity to drive integrated solutions involving ALD technology. For example, innovations in energy-efficient chips for solar inverters, or even hybrid technologies for energy storage, could create new avenues for ALD precursor demand.

Raw Material and Pricing Analysis

The ALD precursor market is heavily dependent on raw materials such as metal-organic chemicals and halide-based compounds. The pricing dynamics of these materials are influenced by a variety of global factors, including the supply and demand for base metals like titanium, aluminum, and hafnium, which are crucial for semiconductor and energy applications.

• Titanium and Hafnium: Titanium-based and hafnium-based precursors are essential for depositing thin layers in high-k dielectric applications. These materials are subject to pricing fluctuations in the raw material markets, driven by global supply constraints and extraction costs. In particular, the use of titanium in the aerospace and automotive industries also competes for raw material supply, further adding to price instability.
• Metal-Organic Precursors: Metal-organic precursors, which are commonly used in semiconductor applications, are generally imported into South Korea, creating a dependency on foreign suppliers. Supply chain disruptions, such as those caused by the COVID-19 pandemic or geopolitical tensions, can impact the flow of these critical materials.

Supply Chain Analysis

The global ALD precursor supply chain is intricate, with significant dependencies on raw material suppliers, chemical manufacturers, and logistics providers. South Korea's ALD precursor market relies heavily on imports of high-purity materials from global hubs, including the United States, Europe, and China. Key suppliers like Merck KGaA and Air Liquide have established a robust presence in South Korea to cater to the growing demand. However, local players, such as SK Materials and Soulbrain, are increasingly ramping up their domestic production to mitigate supply risks.

Additionally, South Korea's high-tech manufacturing industries face logistical challenges related to the transportation of delicate chemicals, requiring specialized storage and handling. The country’s strategic location in Asia provides access to major shipping routes, but disruptions in global shipping networks can create temporary shortages or price hikes.

Government Regulations

In-Depth Segment Analysis

• By Application: High-k Dielectric
  The High-k Dielectric segment represents a significant portion of the ALD precursor market in South Korea, driven by its use in semiconductor manufacturing. High-k dielectric materials are critical for ensuring the continued miniaturization of semiconductor devices, particularly for advanced node technologies (5nm and below). As South Korea’s semiconductor manufacturers, especially Samsung Electronics, push the boundaries of Moore's Law to produce smaller, more efficient chips, the demand for high-k dielectric materials has soared. ALD technology is the preferred deposition method for these materials, as it ensures precision and uniformity at the atomic level. The adoption of high-k dielectric materials in advanced memory and logic devices is expected to continue expanding the demand for ALD precursors in South Korea, given the country’s central role in global chip manufacturing.
• By End-User: Electronics & Semiconductors
  The Electronics & Semiconductors segment is the dominant end-user market for ALD precursors in South Korea. Semiconductor manufacturing is a cornerstone of South Korea’s economy, with industry giants like Samsung and SK Hynix driving global technological advancements. The increasing demand for more compact and efficient chips in consumer electronics, IoT devices, and advanced computing systems is directly contributing to the need for ALD-based processes. The shift toward smaller semiconductor nodes and the integration of advanced materials in chips increases the reliance on ALD for the deposition of ultra-thin films. This trend is set to continue as South Korea invests in next-generation semiconductor fabs, further boosting the demand for ALD precursors in this sector.

Competitive Environment and Analysis

Key players in South Korea's ALD precursor market include both local and international companies. SK Materials Co., Ltd., Soulbrain Co., Ltd., and Hansol Chemical Co., Ltd. are among the prominent domestic players, with significant investments in R&D and production capacity. SK Materials has expanded its ALD precursor offerings to meet the specific needs of the semiconductor and energy storage sectors, while Soulbrain has developed a comprehensive portfolio of materials for advanced manufacturing processes.

On the international side, Merck KGaA and Air Liquide Korea have established a strong presence in the South Korean market, supplying essential ALD materials to meet the needs of the country’s semiconductor and renewable energy industries.

Recent Market Developments

• October 2025: SK Hynix and Samsung Electronics signed letters of intent to supply advanced DRAM wafers for OpenAI's $500 billion Stargate AI data centers. This partnership boosts South Korea's role in AI infrastructure, with joint construction of two facilities in Korea, enhancing ALD precursor demand for high-density HBM production.

South Korea ALD Precursors Market Segmentation

• BY APPLICATION
  • High-k Dielectric
  • Antireflective Coating
  • Moisture Barriers & Encapsulation
  • Surface Passivation
  • Barrier Layers
  • Catalysts & Nanocoatings
  • Others
• BY TECHNOLOGY
  • Plasma-Enhanced ALD
  • Thermal ALD
  • Spatial ALD
  • Roll-to-Roll ALD
• BY END-USER
  • Electronics & Semiconductors
  • Solar Energy
  • Healthcare
  • Telecommunications
  • Automotive
  • Aerospace & Defense
  • Energy Storage
  • Others

Table Of Contents

1. EXECUTIVE SUMMARY

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations

3.7. Strategic Recommendations

4. TECHNOLOGICAL OUTLOOK

5. SOUTH KOREA ALD PRECURSORS
MARKET BY APPLICATION

5.1. Introduction

5.2. High-k Dielectric

5.3. Antireflective Coating

5.4. Moisture Barriers &
Encapsulation

5.5. Surface Passivation

5.6. Barrier Layers

5.7. Catalysts & Nanocoatings

5.8. Others

6. SOUTH KOREA ALD PRECURSORS
MARKET BY TECHNOLOGY

6.1. Introduction

6.2. Plasma-Enhanced ALD

6.3. Thermal ALD

6.4. Spatial ALD

6.5. Roll-to-Roll ALD

7. SOUTH KOREA ALD PRECURSORS
MARKET BY END-USER

7.1. Introduction

7.2. Electronics &
Semiconductors

7.3. Solar Energy

7.4. Healthcare

7.5. Telecommunications

7.6. Automotive

7.7. Aerospace & Defense

7.8. Energy Storage

7.9. Others

8. COMPETITIVE ENVIRONMENT AND
ANALYSIS

8.1. Major Players and Strategy
Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions,
Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES

9.1. SK Materials Co., Ltd.

9.2. Soulbrain Co., Ltd.

9.3. Hansol Chemical Co., Ltd.

9.4. Wonik Materials Co., Ltd.

9.5. Merck KGaA

9.6. Air Liquide Korea

9.7. Entegris Korea

9.8. Linde Korea

10. APPENDIX

10.1. Currency

10.2. Assumptions

10.3. Base and Forecast Years
Timeline

10.4. Key benefits for the
stakeholders

10.5. Research Methodology

10.6. Abbreviations

LIST OF FIGURES

LIST OF TABLES

Companies Profiled

SK Materials Co., Ltd.

Soulbrain Co., Ltd.

Hansol Chemical Co., Ltd.

Wonik Materials Co., Ltd.

Merck KGaA

Air Liquide Korea

Entegris Korea

Linde Korea

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