Toyota Tsusho Invests in U.S. Semiconductor Materials Startup ChEmpower

• Circular Economy

Toyota Tsusho Corporation ("Toyota Tsusho") announced today that it has invested in ChEmpower Corporation ("ChEmpower")--a startup in the United States that develops chemical materials for chemical mechanical polishing (CMP)*1 in the semiconductor manufacturing process--through the issuance of stock acquisition rights based on a simple agreement for future equity (SAFE)*2.

*1 A technology that is indispensable for semiconductor manufacturing, smoothening surfaces by using chemicals and abrasives to eliminate surface irregularities
*2 A right that allows the investor to acquire shares in the future under certain conditions

■Background
In recent years, against the backdrop of factors such as expansion of data centers for artificial intelligence (AI) and higher performance of smartphones, semiconductor demand is expanding rapidly at the global level. At the same time, large quantities of abrasive particles and ultrapure water are used in CMP, a key process in semiconductor manufacturing, and the loss of materials through disposal and reduction of the resulting high impact on the environment are becoming key issues across the industry.
The Toyota Tsusho Group also has a track record of handling chemicals for semiconductor processes and has been studying solutions that contribute toward reducing environmental impact in semiconductor manufacturing.

■Purpose of the investment
ChEmpower is a startup that uses its proprietary chemical technology to develop abrasive-free CMP chemicals and polishing pads. This groundbreaking technology eliminates the need for abrasive particles, which were essential in traditional CMP processes, thereby preventing scratches on the surface of semiconductor silicon wafers and contributing toward improving production yields.
In addition, particle disposal was an issue in traditional processes. By using the abrasive-free technology, disposal after use is no longer necessary, and recycling of water and rare metals from waste liquids becomes easier.
Through this investment, Toyota Tsusho will advance the supply of ChEmpower's products to semiconductor manufacturers in Japan, and at the same time, promote resource circulation initiatives through a business that collects waste liquids generated in semiconductor manufacturing and recycles rare metals.

■Future Outlook
The Toyota Tsusho Group aims to use this abrasive-free technology to promote resource circulation--from the supply of environmentally friendly materials to the collection and recycling of resources--and build an ecosystem for "green semiconductors" that are friendly to the global environment. In this way, the Group will contribute to reducing environmental impact in semiconductor manufacturing, while accelerating initiatives toward realizing a circular economy to "Pass on a better Earth to the children of the future."

The information in this release is current as of the date of announcement.
Please note that information may change after the date of announcement. Thank you in advance for your understanding.