South Korean Chemical Firm OCI Turns Profitable in Q3, Accelerates Pivot to Semiconductor Materials
South Korea's OCI reported a 25.8% year-on-year revenue increase and a return to operating profit in Q3 2026. The company announced it will discontinue its loss-making TDI business to focus on semiconductor materials and wafer regeneration, aligning with AI infrastructure demand.
South Korean chemical giant OCI Corporation disclosed its third-quarter 2026 earnings on October 28, highlighting a strategic shift from traditional chemicals to semiconductor materials. Consolidated revenue reached 599.1 billion KRW, up 25.8% year-on-year, while operating profit stood at 30.3 billion KRW, marking a return to profitability compared to the same period last year. Cumulative operating profit for the first three quarters was the highest since the company's spin-off in 2023.
The performance improvement was driven by increased sales of semiconductor materials and pitch, along with rising carbon black prices. Although exchange rate fluctuations and narrower spreads for BTX and TDI products caused a slight quarter-on-quarter dip in operating profit, the overall trend remained positive. Specifically, the Basic Chemicals division, which includes semiconductor materials, generated 212.6 billion KRW in revenue and 9.7 billion KRW in operating profit, with both metrics growing in the semiconductor segment. The Carbon Chemicals division posted 397.3 billion KRW in revenue and 29.0 billion KRW in operating profit, supported by pass-through of higher oil costs to carbon black prices and increased pitch sales.
In terms of restructuring, OCI decided to terminate its persistently loss-making TDI (toluene diisocyanate) business to concentrate resources on semiconductor and high-value-added materials. The company plans to improve utilization rates for hydrogen peroxide, expand phosphoric acid capacity, and develop specialty etchants. Additionally, OCI aims to cultivate a new growth engine through wafer regeneration services for semiconductor packaging, targeting facility completion in 2027 and commercialization in 2028. This move leverages existing expertise in material science and customer networks to expand its role in the semiconductor supply chain.