Altech Chemicals Limited (ASX:ATC) (FRA:A3Y) is pleased to provide information regarding the use of high purity alumina (HPA) in the manufacture of epoxy moulding compounds (EMC's) that are used in the semi-conductor industry to improve heat dissipation. Altech recently commenced an investigation of the EMC for semi-conductor market for the purpose of targeting some of its future HPA product into this market segment.

Introduction of alumina into EMC's used in semi-conductors Typically industrial-strength epoxy compounds are used for the package assembly of semi-conductors, as the epoxy compounds provide the required physical protection, mechanical strength, as well as a number of desired performance properties - primarily in relation to heat and moisture, both of which can destroy a semi-conductor, warp an electronic device (that the semi-conductor is used in), or even cause a device to catch fire.

Electronic devices continue to become more compact - Moore's Law - the exponential growth in the number of transistors that can be packed into a single semi-conductor. However, thermal or heat dissipation is a real problem as semi-conductors continue to reduce in size and contain more transistors. It is suggested that heat could represent the ultimate barrier to the ever smaller and more powerful semi-conductors that end-users have become accustomed to.

The epoxy resins that have traditionally been used for semi-conductor package assembly are reaching their limits in terms of effective heat dissipation. However, adding thermally conductive materials into the resins has been demonstrated to improve heat dissipation and thereby improve the protection of semi-conductors against heat related failure. The thermally conductive fillers that are being used include HPA, crystalline silica, and magnesium oxide. HPA however is a preferred filer, due to its heat conductivity (7 times higher than silica) and a much lower thermal expansion coefficient (50% lower).

Altech's preliminary investigation into the demand for high quality HPA from the EMC semi-conductor market indicates a global market size in the range of 700 - 900tpa, with a price of US$100/kg being commanded by product that meets required specifications. Year-on-year growth in the market is typically in line with growth experienced in the semi-conductor business. Altech believes that its low sodium HPA, and the morphology of its HPA, may be ideal for the EMC semi-conductor application, and the Company intends to commence the development of a product specification that may suit this market sector's requirements.

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About Altech Chemicals Ltd

Altech Chemicals Limited (ASX:ATC) (FRA:A3Y) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3).

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. There is no substitute for HPA in the manufacture of synthetic sapphire.

Global HPA demand is approximately 25,315tpa (2016) and demand is growing at a compound annual growth rate (CAGR) of 16.7% (2016-2024), primarily driven by the growth in worldwide adoption of LEDs. As an energy efficient, longer lasting and lower operating cost form of lighting, LED lighting is replacing the traditional incandescent bulbs.



Iggy Tan
Managing Director
Altech Chemicals Limited
Tel: +61-8-6168-1555

Shane Volk
Company Secretary
Altech Chemicals Limited
Tel: +61-8-6168-1555

Investor Relations (Europe)
Kai Hoffmann
Soar Financial Partners
Tel: +49-69-175-548320

Link: Altech - HPA use in Semi-Conductor Applications

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