Kolon Life Science is expanding its production of polyphenylene oxide (PPO), a key raw material for next-generation electronic materials used in artificial intelligence (AI) semiconductors and 6G communication devices. The company announced on September 30 that it will increase its annual production capacity to 5,400 tons at its facility in Gyeongbuk's Gimcheon by adding new reactors and enhancing related equipment, with plans to begin operations in the first half of next year.
PPO is a low-dielectric plastic material that reduces electrical losses during the transmission of electrical signals. It is heat-resistant and has insulating properties that allow electricity to flow only along designated paths, making it suitable for high-temperature and high-speed signal transmission environments. As the demand for electronic devices that process large amounts of data quickly, such as AI servers and 6G communication devices, increases, the importance of high-performance low-dielectric materials that minimize electrical signal loss and heat generation is also growing.
Modified polyphenylene oxide (mPPO), processed from PPO, has insulation performance that is three to five times better than traditional insulating materials like epoxy resin, making it increasingly recognized in the semiconductor market. mPPO is used in copper-clad laminates (CCL) for printed circuit board (PCB) manufacturing. CCL is a material made by coating a thin copper sheet onto an insulating board, serving as the base for PCBs, which connect semiconductors and electronic components and transmit electrical signals.
This expansion is also linked to Kolon Group's efforts to grow its electronic materials business. Last June, Kolon Life Science transferred mPPO-related technology and rights to Kolon Industries for 17 billion won. Since then, it has continued to supply PPO, the core raw material for mPPO, to Kolon Industries. Recently, Kolon Industries completed the expansion of its mPPO production line and has begun full-scale production.
With this increase in PPO production capacity, Kolon Life Science aims to ensure a stable supply of raw materials for the group's electronic materials business and actively respond to the growth of the high-performance electronic products market. The company plans to strengthen the foundation necessary for expanding its electronic materials business by introducing new reactors, which are key facilities for converting raw materials into PPO.
Lee Han-guk, CEO of Kolon Life Science, stated, "Through this expansion, we will secure production flexibility and supply stability to meet the diverse demands of our clients," adding, "We will enhance our business competitiveness in the electronic materials sector based on differentiated synthesis technology."
Meanwhile, Kolon Life Science's Chungju plant has recently been recognized for its excellence in talent recruitment and management, employee training, and capability development, earning the 2026 Best HRD certification in the large enterprise category. This facility serves as a production hub for active pharmaceutical ingredients (APIs) and pharmaceutical intermediates. The certification assessment praised the establishment of a systematic talent recruitment and management system and ongoing training that has strengthened employees' job capabilities.
PPO is a low-dielectric plastic material that reduces electrical losses during the transmission of electrical signals. It is heat-resistant and has insulating properties that allow electricity to flow only along designated paths, making it suitable for high-temperature and high-speed signal transmission environments. As the demand for electronic devices that process large amounts of data quickly, such as AI servers and 6G communication devices, increases, the importance of high-performance low-dielectric materials that minimize electrical signal loss and heat generation is also growing.
Modified polyphenylene oxide (mPPO), processed from PPO, has insulation performance that is three to five times better than traditional insulating materials like epoxy resin, making it increasingly recognized in the semiconductor market. mPPO is used in copper-clad laminates (CCL) for printed circuit board (PCB) manufacturing. CCL is a material made by coating a thin copper sheet onto an insulating board, serving as the base for PCBs, which connect semiconductors and electronic components and transmit electrical signals.
This expansion is also linked to Kolon Group's efforts to grow its electronic materials business. Last June, Kolon Life Science transferred mPPO-related technology and rights to Kolon Industries for 17 billion won. Since then, it has continued to supply PPO, the core raw material for mPPO, to Kolon Industries. Recently, Kolon Industries completed the expansion of its mPPO production line and has begun full-scale production.
With this increase in PPO production capacity, Kolon Life Science aims to ensure a stable supply of raw materials for the group's electronic materials business and actively respond to the growth of the high-performance electronic products market. The company plans to strengthen the foundation necessary for expanding its electronic materials business by introducing new reactors, which are key facilities for converting raw materials into PPO.
Lee Han-guk, CEO of Kolon Life Science, stated, "Through this expansion, we will secure production flexibility and supply stability to meet the diverse demands of our clients," adding, "We will enhance our business competitiveness in the electronic materials sector based on differentiated synthesis technology."
Meanwhile, Kolon Life Science's Chungju plant has recently been recognized for its excellence in talent recruitment and management, employee training, and capability development, earning the 2026 Best HRD certification in the large enterprise category. This facility serves as a production hub for active pharmaceutical ingredients (APIs) and pharmaceutical intermediates. The certification assessment praised the establishment of a systematic talent recruitment and management system and ongoing training that has strengthened employees' job capabilities.
* This article has been translated by AI.
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