TSMC’s expansion puts ultra-pure hydrogen peroxide in the spotlight as foreign firms chase new opportunity

TSMC’s drive to expand 3-nanometer production is creating a new opportunity in one of the less visible parts of chipmaking: wafer cleaning.

Reuters reported that Belgian chemical company Solvay plans to raise its annual capacity for ultra-pure hydrogen peroxide in Taiwan to more than 70,000 tonnes by the end of 2026. The increase would more than double its current capacity of about 35,000 tonnes.

Ultra-pure hydrogen peroxide plays an essential role in cleaning wafers during semiconductor production. As chipmakers move toward more advanced processes, manufacturers face stricter contamination controls, making even very small amounts of contamination increasingly important.

TSMC announced in April that it would build another 3-nanometer wafer fab at its Tainan GIGAFAB site. Carlos Silveira, president of Solvay’s Peroxides business, said Taiwan remains a center for advanced processes and that two new advanced-process fabs could quickly consume the added capacity.

The expansion will take place at Shinsol Advanced Chemicals in Tainan, a joint venture in which Solvay holds a 51% stake. Solvay expanded capacity in China last year, is investing in electronic-grade hydrogen peroxide production in Germany and is preparing to pursue opportunities in the United States.

Industry data cited in the report projects a compound annual growth rate of 3.96% for the hydrogen peroxide market through 2031. The Asia-Pacific region is expected to remain the largest and fastest-growing market, driven mainly by semiconductor demand for high-purity hydrogen peroxide.

Electronic-grade products accounted for about 15% of Solvay’s overall hydrogen peroxide business in 2025. Silveira said the company hopes to increase that contribution to at least three times its current level within five to seven years.

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Taiwan is the center of advanced processes, and two new advanced-process wafer fabs will quickly consume this capacity.