SK trichem Overview
SK trichem is South Korea's leading specialist producer of high-purity organometallic precursors, the molecules that atomic layer deposition (ALD) and chemical vapor deposition (CVD) tools use to grow nanometre-thin films on semiconductor wafers. It was formed in 2016 as a 65:35 joint venture between SK Group's materials arm and Japan's Tri Chemical Laboratories (TCLC). TCLC holds the core Korean patent on cyclopentadienyl-hafnium (CpHf) high-k precursors, and SK trichem is its exclusive Korean licensee. With that licence, SK trichem became the dominant supplier of hafnium- and zirconium-based high-k materials for the capacitor stack in SK hynix's advanced DRAM. Its operating margins have run at 24–46%, among the highest in Korean materials manufacturing. It is now entering a defining transition. The CpHf patent expires around the end of November 2026, SK hynix is qualifying additional suppliers, and Samsung Electronics has become a second large customer. Since late 2025 the company has sat inside SK ecoplant's semiconductor materials portfolio.
What the company does
SK trichem develops, manufactures, purifies and sells precursors for thin-film deposition in semiconductor manufacturing. A precursor is a volatile, ultra-high-purity chemical compound, usually an organometallic or organosilicon molecule. It is delivered as vapour into a deposition chamber, where it reacts on the wafer surface to form a film one atomic layer at a time (ALD) or continuously (CVD). Precursor chemistry determines film quality, step coverage in high-aspect-ratio structures, impurity levels, deposition rate and thermal budget. Precursors are therefore qualified per process node and per tool, and once qualified they are rarely changed during a node's life.
The company's portfolio covers four families:
High-k precursors: zirconium (CpZr), hafnium (CpHf) and titanium precursors for ZrO2, HfO2 and TiO2 films, used mainly as the dielectric in DRAM cell capacitors.
Silicon precursors: BTBAS, 3DMAS, OMCTS and 4MS for SiO2 and low-k films by CVD and ALD in DRAM and 3D NAND.
Metal precursors: for conductive and barrier films.
Related process materials: In 2022 SK trichem was one of the suppliers SK hynix approached when it sought additional sources of the surface-protection material used before high-k deposition in the capacitor process.
Company's own description
In its group materials presentation, SK trichem describes itself as a joint venture with Tri Chemical Laboratories of Japan, a company with long experience in the precursor business. It says it is growing rapidly as Korea's No. 1 precursor specialist, with a range of semiconductor precursor products built around customer needs and stable production. It aims to become a global top precursor company by expanding into display and environmentally friendly applications of its semiconductor materials technology. SK ecoplant's 2025 sustainability report puts it more simply: SK trichem manufactures and sells precursors, including high-k, low-k and metal precursors, for which demand is rising with semiconductor scaling and the growth of stacked device structures.
Business model and revenue model
The revenue model is close to 100% product sales. SK trichem sells refined, qualified chemical product by volume under supply arrangements with chipmakers, delivered in returnable stainless-steel canisters and bulk containers. There is no subscription, service or licensing revenue of any note. Its advantage comes from a sublicensed patent position rather than from receiving royalties. TCLC owns the CpHf patent, and SK trichem holds the exclusive Korean right to practise it.
A notable feature of the model is its use of outside chemistry partners. SK trichem buys some precursor intermediates, such as hafnium compounds, from Korean organometallic producers. Lake Materials signed an annual supply contract of about KRW 18 billion with SK trichem in February 2021, and UP Chemical has also supplied intermediates. SK trichem then purifies, qualifies, packages and delivers the finished product under its licence. Since 2025 it has also sold refined Hf precursor to Samsung Electronics, routed through Lake Materials as Samsung's registered vendor.
Value-chain position
SK trichem sits in the tier-1 materials layer. It sources metal halides, ligands and intermediates from chemical producers and sells finished precursors directly to memory fabs. Downstream, its films sit inside DRAM cell capacitors that end up in server, PC, mobile and AI-accelerator memory, including HBM stacks.
Customer types and concentration
The customer base is extremely concentrated. In FY2023, SK hynix's Korean entity accounted for KRW 94.5 billion and its China subsidiary for KRW 48.5 billion of total revenue of KRW 144.1 billion, together more than 99%. In FY2022 about KRW 150 billion of roughly KRW 220–227 billion in revenue came from SK hynix hafnium sales. Samsung Electronics started buying in 2025 and is reported to take about 20% of its Hf precursor needs from SK trichem. This gives SK trichem a meaningful second customer for the first time.
End-markets served
| End-market | Application of SK trichem materials | Relevance |
|---|---|---|
| DRAM (incl. HBM base dies and DRAM cores) | Hf/Zr/Ti high-k ALD for cell capacitors; Si precursors for gap-fill and spacer oxides | Core: most of revenue |
| 3D NAND | Si precursors for SiO2 and low-k films in stacked structures | Secondary |
| Logic / foundry | Silicon and metal precursors | Minor |
| Display (planned) | Thin-film encapsulation and oxide precursors | Stated expansion area |
DRAM (incl. HBM base dies and DRAM cores): Application of SK trichem materials: Hf/Zr/Ti high-k ALD for cell capacitors; Si precursors for gap-fill and spacer oxides; Relevance: Core: most of revenue
3D NAND: Application of SK trichem materials: Si precursors for SiO2 and low-k films in stacked structures; Relevance: Secondary
Logic / foundry: Application of SK trichem materials: Silicon and metal precursors; Relevance: Minor
Display (planned): Application of SK trichem materials: Thin-film encapsulation and oxide precursors; Relevance: Stated expansion area
Independent characterization
SK trichem is in practice a single-product-family, single-customer-group, patent-protected materials franchise. Its economics combine very high margins with high volatility. Revenue rose 45% in 2022 and then fell 37% in 2023 with the memory downcycle and SK hynix's wafer cuts. Margins have fallen in steps from nearly 50% in 2020–2021 to 24% in 2025, as raw-material costs rose, unit prices were negotiated down and competitive pressure built ahead of patent expiry. Its strategic value now rests on three things: its incumbent qualification position in advanced DRAM nodes, which is sticky once a material is in; its position as an SK Group materials affiliate; and its ability to win Samsung and non-Korean volume after the licence moat disappears.
Strategy
Stated strategy
The company's stated aims follow consistent themes across its group materials disclosures:
"Domestic No. 1 to Global Top": grow from Korea's leading precursor specialist into a top-tier global precursor company.
Contribute to Korean materials sovereignty: world-class technology and production capability in precursors that supports the competitiveness of Korea's semiconductor and materials industries.
Safety-centred operations: under an SHE (safety, health, environment) system.
Cost competitiveness, differentiated quality and R&D: - Open collaboration: develop next-generation materials with customers, industry and academia, and expand R&D.
Adjacent expansion: into display and environmentally friendly applications of its semiconductor materials technology.
After joining SK ecoplant, the materials companies set three common priorities: AI and digital transformation in production, product development and supply-chain management; new materials for HBM and next-generation process nodes; and process-specific solutions that combine materials know-how with SK ecoplant's fab-infrastructure business.
Strategic initiatives in the last 24 months
| Initiative | Timing | Description and strategic intent |
|---|---|---|
| Samsung Electronics entry | 2025 onward | Supplies refined Hf precursor through Lake Materials. Reached about 20% of Samsung's Hf precursor volume, ending more than 99% dependence on SK hynix. |
| Transfer to SK ecoplant | Approved May 2025; completed Dec 2025 | Places SK trichem in SK ecoplant's semiconductor services chain (fab EPC, gases, modules, recycling, materials) to strengthen the parent's earnings and valuation. |
| Board renewal | Jan 2025 – Jan 2026 | New CEO; operations head and SK ecoplant finance head added to the board and audit roles. |
| Defence of SK hynix share after patent expiry | 2,026 | Incumbent position at SK hynix (about 80% of Hf supply) faces the qualification of Hansol Chemical and EZTM. Price and service competition is expected from 2027. |
| Capacity expansion | Requested Sep 2026 | New land next to the Sejong complex; scope and investment amount not yet set. |
| Net Zero / RE100 | Target year 2026 | Aims for net zero and 100% renewable electricity in 2026, 24 years ahead of the 2050 global goal. |
Samsung Electronics entry: Timing: 2025 onward; Description and strategic intent: Supplies refined Hf precursor through Lake Materials. Reached about 20% of Samsung's Hf precursor volume, ending more than 99% dependence on SK hynix.
Transfer to SK ecoplant: Timing: Approved May 2025; completed Dec 2025; Description and strategic intent: Places SK trichem in SK ecoplant's semiconductor services chain (fab EPC, gases, modules, recycling, materials) to strengthen the parent's earnings and valuation.
Board renewal: Timing: Jan 2025 – Jan 2026; Description and strategic intent: New CEO; operations head and SK ecoplant finance head added to the board and audit roles.
Defence of SK hynix share after patent expiry: Timing: 2026; Description and strategic intent: Incumbent position at SK hynix (about 80% of Hf supply) faces the qualification of Hansol Chemical and EZTM. Price and service competition is expected from 2027.
Capacity expansion: Timing: Requested Sep 2026; Description and strategic intent: New land next to the Sejong complex; scope and investment amount not yet set.
Net Zero / RE100: Timing: Target year 2026; Description and strategic intent: Aims for net zero and 100% renewable electricity in 2026, 24 years ahead of the 2050 global goal.
Medium-term targets
Management has not published financial targets or guidance. The best available read on 2026 comes from TCLC. After first warning of a large profit decline, its equity-method income from SK trichem in the first half of 2026 (JPY 648 million) ran at about the 2025 pace, and TCLC expects a similar second half.
Products & Services
All products sit in the single precursor business. The company sells qualified grades into customer-specific processes, so it publishes no public price lists. Pricing is negotiated per customer, per node and per supply period.
Service elements. SK trichem provides canister logistics, refilling, analysis and on-site support through its Icheon and Wuxi liaison offices. It also runs quality-analysis support for suppliers, reaching 271 business partners a year according to SK ecoplant's 2025 sustainability reporting.
Pipeline themes. Next-generation high-k materials for sub-10nm-class DRAM, materials for HBM and next-generation process nodes (an SK ecoplant materials priority after the 2025 reorganisation), display-related thin-film materials, and greener production chemistries.
Product Portfolio
| Product | Family | Film / process | Application | Target customer | Notes |
|---|---|---|---|---|---|
CpHf (cyclopentadienyl-hafnium precursor) | High-k | ALD HfO2 | Dielectric in advanced DRAM cell capacitors (often in Zr/Hf mixed or laminated stacks) | SK hynix (Korea, Wuxi); Samsung Electronics since 2025 | Flagship. Made under TCLC's Korean CpHf patent. SK hynix's sole source for several years, then about 80% of its supply. |
CpZr (cyclopentadienyl-zirconium precursor) | High-k | ALD ZrO2 | DRAM cell capacitor dielectric; dominant at 1x/1y-generation DRAM and still used with Hf | SK hynix | Mature, high-volume line. |
Ti precursor | High-k | ALD TiO2 | DRAM capacitor high-k and interface layers | SK hynix | — |
BTBAS (bis(tert-butylamino)silane) | Silicon | CVD/ALD SiO2 and SiN | Spacers, liners and gap-fill in DRAM and 3D NAND | Memory makers | Low-temperature silicon oxide and nitride. |
3DMAS (tris(dimethylamino)silane) | Silicon | ALD/CVD SiO2 | Conformal oxide in DRAM and 3D NAND | Memory makers | — |
OMCTS (octamethylcyclotetrasiloxane) | Silicon (low-k) | PECVD SiOC low-k | Low-k dielectric between interconnects | Memory and logic | — |
4MS (tetramethylsilane) | Silicon (low-k) | PECVD SiC/SiOC | Low-k and etch-stop films | Memory and logic | — |
Metal precursors | Metal | ALD/CVD metal and metal-nitride films | Electrodes, barriers, liners | Memory makers | Part of the stated high-k, low-k and metal portfolio. |
Surface-protection material for the capacitor process | Process chemical | Pre-high-k surface treatment | DRAM capacitor module | SK hynix | SK trichem expressed interest in becoming a qualified source in 2022. |
Financial Narrative
All figures are in KRW billions from SK trichem's statutory (non-consolidated) audited financial statements for fiscal years ended December 31, unless noted otherwise.
Income statement
FY2021 net income is not publicly disclosed. FY2021 first-half net income was KRW 23.1 billion on revenue of KRW 64.6 billion. FY2020, the base year, recorded revenue of KRW 150.5 billion and operating income of KRW 63.5 billion (42.2% margin).
Gross profit, EBITDA, pre-tax income, EPS and dividends per share are not publicly disclosed. As a privately held joint venture with two shareholders, SK trichem has no per-share metrics that mean anything to outside investors.
Revenue CAGR
Revenue was essentially flat over FY2021–FY2025, a four-year CAGR of −0.4%. Over FY2020–FY2025 the five-year CAGR was +0.6%. Behind that flat line sit a sharp cycle peak in 2022 and a trough in 2023.
Commentary
2021–2022: capacity and cycle peak: Revenue stayed near KRW 150 billion for two years. It then jumped 45% in 2022, helped by the 2022 capacity expansion and by SK hynix's DRAM node migration to Hf-based capacitors, which raised precursor use per wafer. Operating margins were exceptional at 46% in 2021 and 41% in 2022. Patent-protected sole-source pricing and a very lean cost base, with fewer than 200 employees, explain those margins.
2023: downturn: SK hynix cut DRAM wafer starts in the 2023 memory downturn. SK trichem's revenue fell 37% and operating profit 56%, showing high operating leverage. Even so, a 28% margin in a severe downcycle shows how strong the franchise was.
2024: partial recovery: Revenue rose 7% and operating profit 20% as SK hynix restored utilisation for HBM and DDR5. Revenue nonetheless stayed about a third below the 2022 peak. That suggests lower unit prices and possibly some share loss to UP Chemical, which had become a licensed second source at SK hynix.
2025: margin squeeze: Revenue was flat while operating profit fell 25%, taking the margin to 23.9%, the lowest since founding. TCLC's investor materials name the drivers: soaring raw-material prices and lower unit selling prices. Revenue held up only because of new Samsung volumes. Net income still rose 4% to KRW 34.8 billion, meaning non-operating income (mainly financial income on accumulated cash, plus FX) made up for the operating decline. Net income was 94% of operating income in 2025, against 68% in 2024.
Shareholder's-eye profit cross-check (TCLC equity-method income)
TCLC books 35% of SK trichem's profit under the equity method. Its disclosures give an independent, audited read on SK trichem's earnings, with TCLC's fiscal year ending January 31.
SK trichem accounts for nearly all of this line; the other affiliate is HBR, a hydrogen bromide JV. TCLC attributes about JPY 1,282 million of the FY Jan-2026 figure to SK trichem. TCLC initially budgeted SK trichem's contribution to fall to about JPY 400 million in its year ending January 2027, citing raw-material costs and lower unit prices. Actual first-half equity income was JPY 648 million, however, and TCLC expects the second half to match. That points to SK trichem's 2026 profit holding broadly near 2025 levels rather than collapsing.
Balance sheet
The full balance sheet appears in the company's statutory audit reports. Total assets, cash, debt, goodwill and working capital have not been made public in investor or press materials. The qualitative picture is still clear:
Leverage: No borrowings or bond issues have been reported. The size of non-operating income in 2025 and the absence of any capital calls on the JV partners point to a net cash position.
Distributions: TCLC's balance-sheet disclosures show its SK trichem investment carrying value falling because of dividends received from equity-method affiliates (for example, in its FY Jan-2024 interim). SK trichem therefore pays regular dividends to its two shareholders, although amounts are not publicly disclosed.
Goodwill and intangibles: None material. The patent licence comes from TCLC as JV partner and does not appear as a purchased intangible.
Cash flow and capital expenditure
Annual operating cash flow, free cash flow and dividend totals are not publicly disclosed. Disclosed growth capex:
Public subsidies received from Sejong City total KRW 4.7 billion across the 2017 and 2021 rounds.
Ratios
Return ratios that need balance-sheet data (ROE, ROA, ROIC, current ratio, debt/equity, net debt/EBITDA, interest coverage, cash conversion cycle) are not publicly disclosed. Two ratios can be derived:
Taking the KRW 346 billion implied 2025 equity valuation, FY2025 net income implies a return on that market-based equity value of about 10%. Book ROE is very likely higher, because book equity sits well below the transaction-implied value.
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View Subscription PlansFinancial Detail
Revenue by Segment and Segment Margins & Growth (%)
| Segment metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Precursors revenue (KRW Bn) | 144.2 | 154.9 | 154.8 |
Precursors operating profit (KRW Bn) | 40.9 | 49.1 | 37.0 |
Precursors operating margin (%) | 28.4 | 31.7 | 23.9 |
Precursors revenue YoY growth (%) | -36.5 | 7.4 | -0.1 |
Share of total revenue (%) | 100 | 100 | 100 |
Group Structure
| Level | Entity | Role |
|---|---|---|
Ultimate holding | SK Inc. (KRX: 034730) | Holds a controlling stake in SK ecoplant (about 66% after the 2025 transactions) |
Parent | SK ecoplant Co., Ltd. | Owns 65% of SK trichem; runs semiconductor infrastructure EPC, industrial gases (SK airplus), memory modules (Essencore), IT recycling (SK tes) and materials |
Materials management | SK ecoplant materials | Manages SK trichem, SK Resonac, SK Materials JNC and SK Materials Performance |
Joint-venture partner | Tri Chemical Laboratories Inc. | Owns 35%; licensor of the core Hf patent; accounts for SK trichem under the equity method |
Operating company | SK trichem Co., Ltd. | Precursor manufacturing, R&D and sales |
Income Statement and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Revenue (KRW Bn) | 157.0 | 227.2 | 144.2 | 154.9 | 154.8 |
Operating income (KRW Bn) | 72.9 | 93.6 | 40.9 | 49.1 | 37.0 |
Net income (KRW Bn) | — | 67.7 | 27.5 | 33.5 | 34.8 |
Revenue YoY growth (%) | 4.3 | 44.7 | -36.5 | 7.4 | -0.1 |
Operating income YoY growth (%) | 14.8 | 28.4 | -56.3 | 20.0 | -24.7 |
Net income YoY growth (%) | — | — | -59.4 | 21.9 | 4.0 |
Operating margin (%) | 46.4 | 41.2 | 28.4 | 31.7 | 23.9 |
Net margin (%) | — | 29.8 | 19.1 | 21.6 | 22.5 |
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View Subscription PlansFinancial Analysis
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Cumulative revenue index (FY2021 = 100) | 100.0 | 144.7 | 91.8 | 98.7 | 98.6 |
Balance Sheet
| Metric | FY Jan-2024 | FY Jan-2025 | FY Jan-2026 |
|---|---|---|---|
TCLC share of profit of equity-method affiliates (JPY Mn) | 1,036 | 1,310 | 1,277 |
Key Financials
| Metric | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Share capital (KRW Bn) | 25.0 | 25.0 | 25.0 | 25.0 |
Capex programme
| Capex programme | Date | Amount (KRW Bn) | Purpose |
|---|---|---|---|
Initial plant investment (tranche 1) | Early 2017 | 17.3 | First precursor production facilities, Sejong |
Initial plant investment (tranche 2) | Early 2017 | 8.3 | Additional lines and utilities |
Precursor line expansion | 2022 | 31.9 | Largest investment since founding; added capacity for Hf/Zr high-k demand |
Next expansion (land next to the Myeonghak complex) | Plan raised Sep 2026 | Not yet determined | New plant site; Sejong would designate SK trichem to develop the extension of the industrial complex |
Income Statement and Margin Analysis (%) (FY2022–FY2025)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Revenue per employee (KRW Mn, FY2025 headcount basis) | — | — | — | 846 |
Net income / operating income (%) | 72.3 | 67.2 | 68.2 | 94.1 |
Region (Customer Location) Overview
| Region (customer location) | FY2023 |
|---|---|
South Korea — SK hynix Korean entity (KRW Bn) | 94.5 |
China — SK hynix China subsidiary, Wuxi DRAM fab (KRW Bn) | 48.5 |
Other customers (KRW Bn) | 1.2 |
Total revenue (KRW Bn) | 144.2 |
Region share | FY2023 |
South Korea (%) | 65.5 |
China (%) | 33.6 |
Other (%) | 0.8 |
Valuation Snapshot
| Metric | Value |
|---|---|
Value attributed to the 65% stake (KRW Bn) | 224.9 |
Implied 100% equity value (KRW Bn) | 346.0 |
Implied P/E on FY2024 net income (x) | 10.3 |
Implied P/E on FY2025 net income (x) | 9.9 |
Implied price/sales on FY2025 revenue (x) | 2.2 |
Balance Sheet — Equity-method income recognised by TCLC
| Metric | FY Jan-2024 | FY Jan-2025 | FY Jan-2026 |
|---|---|---|---|
Equity-method income recognised by TCLC (JPY Mn) | 1,036 | 1,310 | 1,277 |
TCLC consolidated net sales (JPY Mn) | 11,246 | 18,905 | 23,883 |
TCLC consolidated net profit (JPY Mn) | 2,470 | 4,961 | 5,515 |
Analyst Conclusions
Management guidance. SK trichem publishes no guidance. Its JV partner's disclosures are the best proxy. TCLC started its year to January 2027 expecting SK trichem's profit contribution to fall to about JPY 400 million, but first-half equity income came in at JPY 648 million and TCLC expects a similar second half. That implies SK trichem's 2026 net income will be broadly in line with 2025's KRW 34.8 billion. Revenue support in 2026 comes from Samsung volumes and SK hynix's capacity ramp, offset by price and cost pressure.
Consensus expectations. There is no sell-side coverage. Industry participants expect SK hynix to start mass-producing with new Hf suppliers in 2027, and expect SK trichem to keep its Samsung position because a qualified material is hard to displace.
Bull case
-
Volume outgrows price. SK hynix's Hf purchases are said to be worth several hundred billion won a year and rising with AI-driven DRAM capacity. Even if SK trichem's share at SK hynix falls from about 80% to 50–60%, absolute volume can hold up while Samsung adds a second growth engine. The September 2026 request for expansion land suggests management sees this volume coming.
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Incumbency is sticky. Requalifying a capacitor dielectric at a leading DRAM node is costly and risky. TCLC's first-half 2026 equity income of JPY 648 million, against a budget that implied far less, shows the economics holding up better than feared.
-
Hidden balance-sheet value. A transaction value of about KRW 346 billion is less than ten times earnings for a business that has never earned below a 19% net margin and appears to hold net cash. A buyout of TCLC's stake or a combination within SK ecoplant could unlock value.
Bear case
-
Patent cliff economics. Hansol, EZTM, Merck and possibly Lake Materials will compete for SK hynix volume from 2027. Precursor prices in competitive markets support mid-teens margins, about where Adeka Korea operated in FY2023, not SK trichem's historical 30–46%.
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Concentration persists. Even with Samsung, most revenue depends on a single group customer that has openly pursued second sourcing and price cuts since 2021.
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Cost squeeze is structural. FY2025 operating profit fell 24.7% on flat revenue, and raw-material inflation and price cuts continue into 2026. A 2023-style memory downturn would hit a lower-margin business harder.
Key catalysts and monitorables for the next 12 months
CpHf patent expiry: Expected timing: End of Nov 2026; What to watch: Price renegotiations at SK hynix and Samsung
Hansol Chemical / EZTM qualification at SK hynix: Expected timing: Evaluation through end-2026; possible mass production in 2027; What to watch: Share split versus the current 8:2 SK trichem–UP Chemical ratio
SK–TCLC JV restructuring: Expected timing: Around and after patent expiry; What to watch: Any SK buyout of TCLC's 35% or a new licence or technology agreement
FY2026 audited results: Expected timing: H1 2027; What to watch: Operating margin against the 23.9% FY2025 trough
TCLC FY Jan-2027 results: Expected timing: Mar 2027; What to watch: Equity-method income from SK trichem
Sejong expansion decision: Expected timing: 2027; What to watch: Investment size and capacity added
Samsung share: Expected timing: 2027; What to watch: Holding at about 20% or rising
SK ecoplant strategy: Expected timing: Ongoing; What to watch: Integration, possible combination of materials subsidiaries, or capital-structure moves
Analyst verdict
SK trichem has been one of the most profitable small businesses in the global semiconductor supply chain: a 180-person company in Sejong that turned an exclusive Korean licence to TCLC's cyclopentadienyl-hafnium patent into about KRW 1 trillion of cumulative revenue and operating margins that peaked near 50%. The record from FY2021 to FY2025 shows what the moat was worth and how it is wearing down. Revenue has been flat at about KRW 155 billion since 2024, while operating margin has fallen from 46% to 24% as raw-material costs rose, SK hynix pushed prices down and a licensed second source (UP Chemical) took about a fifth of SK hynix's Hf supply.
The end-November 2026 patent expiry turns a protected franchise into a contested one. SK hynix has already lined up Hansol Chemical and EZTM for 2027, and Merck, DNF, Lake Materials and others are waiting. The fair base case is for SK trichem's SK hynix share to fall and for prices across the Korean market to reset lower. Steady-state operating margins in the mid-to-high teens look plausible, rather than the 24–46% of the past.
The franchise is far from broken. SK trichem has hard-to-replace qualification at both Korean DRAM leaders, including a new and probably durable 20% share at Samsung. It has a debt-free, cash-generating balance sheet, an AI-driven increase in DRAM capacity that raises total high-k demand, and a parent group with every reason to keep SK hynix's supply chain partly in-house. TCLC's 2026 first-half equity income suggests earnings are holding up better than its own shareholders expected.
On balance, SK trichem looks less like a growth asset and more like a cash-generative incumbent heading into price normalisation. Its value from here depends on three things: holding at least half of SK hynix's Hf volume, expanding at Samsung, and converting its R&D into the next high-k chemistry before competitors do. The likely restructuring of the SK–TCLC joint venture, probably an SK buyout of the 35% stake at a modest earnings multiple, is the main event to watch, and it would leave SK ecoplant with full control.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Role | Current position | Prior role | Appointed (term) |
|---|---|---|---|---|
Ha Jung-hwan | Representative Director (CEO) and Board Chair | CEO, SK trichem; CEO, SK Materials JNC | CEO, SK Materials Performance | Jan 2025 (3 years) |
Park Kyung-taek | Inside Director | Head of Business Operations, SK trichem | Head of Management Innovation Group, SK Materials Performance | Jan 2026 (3 years) |
Kim Hwa-rang | Non-executive Director | Head of Business Strategy, SK ecoplant materials | Change management lead, SK Inc. Materials; investment finance team leader, SK ecoplant | 3-year term |
Kiyoshi Tazuke | Non-executive Director | President, Tri Chemical Laboratories | Head of Sales Division, TCLC | Mar 2025 (3 years, 2nd term) |
Yoshihide Suzuki | Non-executive Director | Director, Tri Chemical Laboratories | General Manager, TCLC | Mar 2025 (3 years, 1st term) |
Ahn Byung-hun | Auditor | Head of Korea Office, Tri Chemical Laboratories | Deputy Head, Korea Office | Mar 2024 (3 years, 2nd term) |
Shin Won-sik | Auditor | Head of Finance, SK ecoplant materials | Investment finance team leader, SK ecoplant | Jan 2026 (3 years) |
Board & Management Changes
| Period | CEO | Context |
|---|---|---|
2016–2018 | Founding management from SK Materials | Plant build-out and first SK hynix qualifications |
Dec 2018 onward | Park Ki-sun (also head of corporate R&D, SK Materials) | Hf transition at SK hynix; capacity growth |
Jan 2022 | New CEO elected at an extraordinary shareholders' meeting and board meeting | Followed the SK Materials–SK Inc. merger |
Jan 2025–present | Ha Jung-hwan | Customer diversification, Samsung entry, transfer to SK ecoplant |
Major Shareholders
| Shareholder | Stake (%) | Basis |
|---|---|---|
SK ecoplant Co., Ltd. | 65.00 | Common shares, latest reported register (FY2025) |
Tri Chemical Laboratories Inc. | 35.00 | Common shares, latest reported register (FY2025) |
Competitive Landscape
Key Competitors
| Competitor | Home | Relevant products | Position vs SK trichem |
|---|---|---|---|
Adeka (Adeka Korea) | Japan / Korea | Hf and Zr high-k precursors | Long-standing main Hf supplier to Samsung (about 80% after 2025), paying TCLC royalties. Adeka Korea earned 2023 revenue of KRW 332.3 bn and operating profit of KRW 55.9 bn. |
UP Chemical (subsidiary of Yoke Technology) | Korea | Zr and Hf high-k precursors, Si precursors | TCLC licensee; about 20% of SK hynix Hf supply; earlier replaced Mecaro as SK hynix's Zr supplier |
Hansol Chemical | Korea | Precursors, hydrogen peroxide, chemicals | Selected by SK hynix in July 2026 for Hf qualification; mass production expected in 2027 if it qualifies |
EZTM (formerly Eugene Technology Materials) | Korea | ALD/CVD precursors | Selected with Hansol in July 2026; backed by SK hynix's manufacturing organisation |
Merck KGaA (EMD Electronics; incl. Versum and Mecaro's precursor business) | Germany | Broad deposition precursor portfolio | Lost its patent challenge; in the SK hynix 2026 bid but not shortlisted; preparing CpHf for after expiry |
DNF (Soulbrain group) | Korea | DRAM precursors (Al, ACL, DPT), Hf-family development | Major Samsung DRAM precursor supplier; in the 2026 SK hynix bid but not shortlisted |
Lake Materials | Korea | TMA, high-k intermediates and precursors | Partner and supplier today; possible direct competitor after expiry. 2023 revenue KRW 117.8 bn, operating profit KRW 29.5 bn. |
Tri Chemical Laboratories | Japan | High-k, metal and Si CVD materials, etching gases | JV partner; competes in Taiwan, China and Japan. FY Jan-2026 net sales JPY 23.9 bn. |
TEMC | Korea | Specialty gases and precursors | Bid at SK hynix in 2026; not shortlisted |
Mecaro | Korea | Formerly Zr/Hf precursors | Sold its precursor business to Merck; no longer competes directly |
Air Liquide, Entegris | France / US | Advanced deposition materials | Global precursor majors; limited presence in Korean DRAM high-k |
Peer Comparison FY2025
| Company | Revenue (local, M) | Revenue growth (%) | Operating margin (%) |
|---|---|---|---|
SK trichem (KRW) | 144,150 | -36.5 | 28.4 |
Adeka Korea (KRW) | 332,300 | — | 16.8 |
Lake Materials (KRW, consolidated) | 117,800 | -10.4 | 25.1 |
Tri Chemical Laboratories (JPY, FY Jan-2024) | 11,246 | -18.5 | 17.3 |
“—” = not publicly disclosed.
