AI chip demand and fresh Middle East trouble are pushing semiconductor raw material prices higher, according to industry sources.
China stirred the pot earlier this month when it said it would suspend helium exports because of supply chain disruption.
According to UDN China is not a major helium exporter by capacity, but its role could still cause bother if disruption spreads. Semiconductor fabrication needs a long list of chemicals because chipmakers print billions of transistors onto tiny wafers in layers.
Those chemicals deposit materials onto wafers, strip away excess material, cool wafers and keep everything clean enough for the microscopic circus to work.
UDN claims key chipmaking chemicals are now getting pricier. The affected materials include hydrofluoric acid and isopropanol. Hydrofluoric acid is used for etching, surface treatment and cleaning. Isopropanol is used to clean wafers, machinery and the photomasks that transfer designs onto silicon.
Formosa Plastics and Sheng Yi Electronics are among the suppliers raising prices. Formosa deals in hydrofluoric acid and isopropanol, while Sheng Yi is mainly involved with isopropanol.
Formosa has already raised prices.
Sheng Yi has told customers that after its first increases, it will continue to monitor the market before deciding whether further increases are needed.
Industry sources reckon Formosa will add more electrochemical production capacity in the current half of the year.
More capacity could arrive in 2027, assuming the market has not already had a nervous breakdown by then.
Analysts said strong demand for chip packaging is adding more pressure to the chemical supply chain.
Formosa Daikin, a joint venture between Formosa Plastics and Japan’s Daikin Industries, is a key player in hydrofluoric acid.
Formosa Plastics Tokuyama, a venture between Formosa Plastics and Japan’s Tokuyama, dominates the isopropanol market.
That gives Formosa a handy position as AI demand and tight supply turn dull industrial chemicals into rather useful money spinners.
The outfit is expected to grow its business while the chip industry keeps hoovering up materials for AI hardware.
