On September 29, 2026, South Korea’s OCI Company held a board meeting and decided to terminate its TDI (toluene diisocyanate) manufacturing and sales business after 36 years of operation. On the same day, the company announced that it would join the semiconductor chemical materials industry cluster in Gunsan, Jeollabuk-do, as an anchor company. The South Korean chemical company is withdrawing resources from traditional businesses and concentrating them on semiconductor materials.
TDI: The End of a 36-Year Business
According to OCI’s filing with the Korea Exchange, the amount involved in the discontinuation of the TDI business is KRW 117.947 billion, accounting for 5.87% of the company’s most recent consolidated sales for 2025. In the board resolution, the reason for the business suspension was explicitly stated as “streamlining marginal businesses,” meaning divesting low-profitability operations and reallocating operating resources to more profitable areas.
OCI began its TDI business in 1990 and has operated it for 36 years. TDI is a core raw material for polyurethane and is mainly used to produce flexible polyurethane foam for car seats, furniture, and bedding. The company’s TDI capacity is 50,000 tons per year, with products exported to China, Turkey, and Southeast Asia.
South Korea’s Dong-A Ilbo reported that the expansion of TDI production capacity and increased exports by Chinese companies have intensified competition in the Asian market, putting continued pressure on the profitability of the TDI business; this is one of the background factors behind OCI’s business restructuring. The company plans to officially stop production and sales from December 18, 2026, and said the date may be adjusted according to the progress of the business termination.
Semiconductor Materials: From Cluster Anchor to Capacity Expansion
On the same day, OCI announced its participation in the semiconductor chemical materials industry cluster in Jeollabuk-do. According to Yonhap News Agency, South Korea’s Ministry of Trade, Industry and Energy selected Gunsan, Iksan, and Wanju County as the semiconductor chemical materials field of the third-phase “materials-components-equipment” specialized complex, with OCI participating as the core anchor company in the Gunsan area. The cluster will receive about KRW 45 billion in government support and KRW 830 billion in private investment over the next five years.
OCI already has semiconductor materials production bases in Gunsan and Iksan. The Gunsan plant produces semiconductor-grade polysilicon and phosphoric acid for etching processes. Its polysilicon capacity is 4,700 tons per year, and its current phosphoric acid capacity is 25,000 tons per year, with plans to expand it to 30,000 tons through debottlenecking. The Iksan plant produces hydrogen peroxide for semiconductor cleaning and etching. OCI began commercial production of hydrogen peroxide in Iksan in 1979 and is currently South Korea’s second-largest hydrogen peroxide producer.
In addition to existing products, OCI also plans to develop new semiconductor materials such as specialty etchants and to advance a wafer reclaim business for semiconductor packaging, targeting commercial production in the first half of 2027.
OCI President Lee Soo-mi said on the day of the cluster announcement that the company will contribute to the stability of the domestic semiconductor materials supply chain as a regional anchor company and accelerate its transformation into an advanced materials company through selection and concentration.
The exit from the TDI business and the entry into the semiconductor materials industry cluster constitute two recent moves in OCI’s business adjustment, as the company’s business focus shifts from traditional chemicals to high-value-added materials.
