Pharmicell Signs 7.9 Billion Won Electronic Materials Supply Deal With Doosan, Completing Transformation Into AI Materials Company

Pharmicell has signed a 7.9 billion won supply agreement with Doosan for electronic materials. The contract value represents 6.92% of Pharmicell’s annual revenue in 2025, and deliveries are due by Oct. 31, 2026. Although the agreement itself appears to be a short-term supply transaction, it is underpinned by a structural growth story directly linked to the AI semiconductor supply chain.

The materials Pharmicell supplies to Doosan are low-dielectric-constant resins and curing agents used to manufacture copper-clad laminates (CCLs), which are essential for AI servers and accelerators. Doosan’s Electronic BG uses these materials to produce high-performance CCLs supplied to global technology companies, including Nvidia. Pharmicell is effectively the exclusive supplier of key raw materials for Doosan Electronic BG’s CCLs for AI servers.

Low-dielectric-constant materials are specialized materials that minimize signal loss during high-speed data transmission, and they require a high level of technical expertise. Because materials for AI servers must undergo strict customer recertification whenever formulation conditions or manufacturing equipment change even slightly, new competitors face structural barriers to entry. Kim Soo-hyun, a researcher at DS Investment & Securities, said, “Because it is difficult to diversify suppliers for high-quality products used in AI accelerators, Pharmicell is benefiting exclusively, leading to large-scale plant expansions.”

Pharmicell’s annual revenue in 2025 reached 114 billion won, up 75% from the previous year and surpassing 100 billion won for the first time. As of the first quarter of 2026, revenue from low-dielectric-constant electronic materials alone was 26 billion won, accounting for approximately 71% of total revenue. The electronic materials business is effectively driving the company’s overall performance.

Pharmicell was originally known as a biotech company that developed the world’s first stem cell therapy. However, as the electronic materials business within its chemical division has grown rapidly, the center of its business has shifted completely. The Korea Exchange also changed Pharmicell’s industry classification from “pharmaceuticals” to “electrical and electronic.”

To meet surging demand, Pharmicell is investing 37.5 billion won to build a third plant in Ulsan. The plant will be 1.75 times the combined area of the existing first and second plants, and its production capacity will double from current levels when operations begin in early 2027.

The high-end CCL market, the downstream market, is also estimated by the industry to grow by approximately 45% annually over the three years beginning in 2025, driven by demand for AI servers. Oh Kang-ho, a researcher at Shinhan Securities, said, “Doosan, the downstream customer, is expected to achieve medium- to long-term growth through expansion, which will also create a strong trickle-down effect for materials suppliers across the value chain.”

With mass production of Nvidia’s next-generation AI semiconductors, including “Rubin,” expected to ramp up in the second half of 2026, Pharmicell’s supply volumes are projected to continue increasing. Doosan Electronic BG is conducting quality testing of CCLs for Rubin, and Pharmicell’s participation as the exclusive supplier of the relevant materials is drawing attention.