Kolon Life Science Expands PPO Production Capacity, Targeting Next-Generation Electronic Materials for AI and 6G

▷ Expands annual PPO production capacity at its Gimcheon Plant to 5,400 metric tons, with operations targeted for the first half of 2027
▷ Strengthens the supply base for a key raw material used in mPPO to meet growing demand for high-performance electronics

Kolon Life Science (CEO Han-gook Lee) is expanding production of a key raw material for next-generation electronic materials used in AI semiconductors and 6G communications equipment.

Kolon Life Science announced on September 30 that it will expand its polyphenylene oxide (PPO) production facilities at its Gimcheon Plant in North Gyeongsang Province, increasing annual production capacity to 5,400 metric tons. The company plans to install a new reactor and upgrade related equipment, with operations scheduled to begin in the first half of 2027.

PPO is a low-dielectric plastic material that reduces electrical losses during signal transmission. Its heat resistance and electrical insulation properties, which help keep current flowing along intended paths, make it suitable for high-temperature environments and high-speed signal transmission. As electronic devices such as AI servers and 6G communications equipment process increasingly large volumes of data at high speeds, high-performance, low-dielectric materials that reduce signal loss and heat generation are becoming increasingly important.

Modified polyphenylene oxide (mPPO), produced by modifying PPO, has recently attracted attention in the semiconductor market for its electrical insulation performance, which is three to five times that of conventional epoxy resin. mPPO is used in copper-clad laminates (CCLs), which are used to manufacture printed circuit boards (PCBs). A CCL consists of an insulating substrate laminated with thin copper foil and serves as the base material for a PCB. PCBs connect semiconductors and electronic components and transmit electrical signals.

The expansion is also aligned with Kolon Group’s growing electronic materials business. In June last year, Kolon Life Science transferred its mPPO-related technologies and rights to Kolon Industries for KRW 17 billion. Since then, the company has continued to produce PPO, a key raw material for mPPO, and supply it to Kolon Industries. Kolon Industries recently completed an expansion of its mPPO production line and commenced full-scale production.

Through the increase in PPO production capacity, Kolon Life Science plans to ensure a stable supply of raw materials for the Group’s electronic materials business and respond proactively to growth in the high-performance electronics market. To this end, the company aims to strengthen its production infrastructure, including the installation of a new reactor, a key piece of equipment that converts raw materials into PPO.

Han-gook Lee, CEO of Kolon Life Science, stated, “This investment will mark a further expansion of our production base for electronic materials feedstocks.” He added, “Through this expansion, we will secure the production flexibility and supply stability needed to meet customers’ diverse needs, while strengthening our competitiveness in electronic materials through our differentiated synthesis technologies.”