Supply Tightening Expected for Specialty Electronic Gases

Demand to outpace supply for NF3 and WF6 unless alternatives come into play

San Diego, CA, August 31, 2022: TECHCET—the electronic materials advisory firm providing business and technology information— reports that the supply of Specialty Gases, nitrogen trifluoride (NF3) and tungsten hexafluoride (WF6) for electronics could tighten amongst high projected demand by 2025-2026. This forecasted steep trajectory will challenge supply-chains to keep pace. However, alternatives being developed could interrupt this trend. Both NF3 and WF6 are part of a larger US$5 billion specialty gas segment forecasted to grow 30% over the next 5 years, to total US$6.5 billion by 2026. As shown below, NF3 is expected to grow even more steeply, 72% over the forecast period (as highlighted in TECHCET’s 2022 Critical Materials Report™ on Electronic Gases).

Alternatives for these gases are currently in development which could cause a shift in growth trends. The increasing demand for NF3 in electronic manufacturing, including flat-panel displays, has triggered concern among atmospheric scientists over emissions of nitrogen trifluoride, a potent greenhouse gas. Particularly, NF3 gas has a high Global Warming Potential (GWP) compared to other gases. Consequently, the electronics industry is looking at and considering processes for on-site fluorine generation that can use F2, in place of NF3, for chamber cleaning.

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Electronic Gases Markets – To Approach a US$9 Billion Market in 2022

New materials and increasing chip design complexity drives supply-chain problems for Specialty Gases, Rare Gases and Helium

San Diego, CA, June 15, 2022: TECHCET—the electronic materials advisory firm providing business and technology information— reports that the Electronic Gases market revenues hit US$6.3 billion in 2021 and is forecasted to grow to 8% in 2022. In its recently completed Electronic Gases Report , TECHCET forecasts the 2022 Electronic Gases market will reach almost US$6.8 billion—growth primarily attributed to Specialty Gases. As leading-logic and new generations of memory continue to ramp, Specialty Gases consumed in etching, deposition, chamber cleaning, and other applications remain in strong demand. This segment is forecasted to increase by 10% in 2022 with ~9% CAGR through to 2026, as indicated in TECHCET’s newly released 2022 Critical Materials Report™ on Electronic Gases, authored by Jonas Sundqvist, PhD.

In the near-term, there are supply issues for key industry gases, such as helium and neon; and in the longer term, the supply/demand balance for gases such as nitrogen trifluoride (NF3), tungsten hexafluoride (WF6), and others could tighten as industry demand grows.

Neon supply capacity is at risk due to the Russian invasion of Ukraine. Some gas supply from these sources may be at a permanent loss. Helium supply-chain disruptions stemming from lack of Russian supply availability are starting to have an impact on the semiconductor industry. Russia’s current export ban on helium and rare gases will prolong the supply-chain issues with Helium and rare gases like Neon. The war is only part of the helium supply issue – maintenance problems, delayed product availability, and production disruptions in other helium producing regions are all adding to the tightness in the supply chain.

As new semiconductor device fabs come online globally over the next several years, supply constraints may appear for other gases (B2H6, WF6, NF3, CF-gases) since demand increases are expected to outpace supply. With semiconductor manufacturers increasing fab production capacity, the demand for diborane (B2H6) material is rapidly increasing as it is critical in many device applications such as in doped carbon hard masks.

As more CVD/ALD deposition process passes are added for multi-patterning and EUV-lithography, cleaning demand is increasing, thus we anticipate huge growth in NF3 (used for chamber cleaning). With the current projections, demand may outrun supply causing tightness in NF3 availability come 2025-2026. Similarly, TECHCET estimates there may be supply issues with WF6 around 2025-2026. However, the possibility of molybdenum (Mo) replacing tungsten (W) for memory applications could circumvent any WF6 shortage. WF6 demand is primarily driven by vertical scaling in 3DNAND to higher layer counts, though new interconnect materials could lessen any future supply/demand imbalance.

Among the sources of electronic gases highlighted in TECHCET’s CMR are Air Products, Air Liquide, EMD / Merck, Linde, Matheson Gas, SK Materials, Gazprom, Huate Gas, Peric, and many others. For more details on the Electronic Gases market segments and growth trajectory go to: https://techcet.com/product/gases/

ABOUT TECHCET: TECHCET CA LLC is an advisory services firm focused on process materials supply-chains, electronic materials business, and materials market analysis for the semiconductor, display, solar/PV, and LED industries. Since 2000, the company has been responsible for producing the Critical Material Reports™, covering silicon wafers, semiconductor gases, wet chemicals, CMP consumables, Photoresists, and ALD/CVD Precursors. The Critical Materials Council (CMC) of semiconductor fabricators is a business service offered by TECHCET, and includes materials supplier Associate Members. For additional information about reports, market briefings, CMC membership, or custom consulting please contact info@cmcfabs.org, +1-480-332-8336, or go to www.techcet.com.

Electronic Gas Markets – Strong Growth, Pressing Supply-Chain Issues

San Diego, CA, March 3, 2022: TECHCET—the electronic materials advisory firm — announced a positive growth outlook for Electronic Gases through 2026. The 2022 Electronic Gas market is expected to top US$7 billion, driven mainly by logic chip fab expansions. Despite an expected 8% CAGR, there are pressing supply-chain issues, both nearer term and possibly longer term, exist in this industry segment. The Russia-Ukraine war is sparking growing concerns relating to the availability of gases such as neon, helium and other gases critical to semiconductor production around the globe.

The turmoil in the region, and related economic sanctions against Russia, will likely affect several key gases used by the semiconductor industry. Neon and helium are two examples. TECHCET’s latest analysis shows that majority of all high purity neon imports into the US is coming from the Ukraine. This represents <50% of total US demand.

TECHCET’s contacts in Ukraine indicate that rare gas purifiers in Ukraine have been temporarily shut down due to the conflict. So far there has only been an interruption of 5-6 days. However, if the fighting lingers on this could have a major impact on the chip industry that has been pushing hard to increase production.

Many of the supply-chains that support the industry are running thin on capacity. Investments in more material production has been lacking and demand for materials has been growing so fast that material pinch points exist in nearly every material segment, including gas processing equipment and subsystems. On-going issues on lead-times for all types of components related to gas processing (tool gas box upgrades, precursor deliver systems, bulk refill) are expected to impact lead-times for gas and precursor supply systems

“Even those material supply-chains that were looking fairly balanced in 2020 are increasingly getting pinched and any perturbation in the supply-chain can cause shortage issues,” said Lita Shon-Roy, TECHCET’s President & CEO. Helium is a prime example where hiccups in the supply-chain are causing increased lead-times and availability problem as the chip industry pushes up their demand. The US BLM, the US’s key source of helium, has been experiencing maintenance issues, delaying product availability, and Russia’s Gazprom purified helium production has been delayed (6 months or more) due to fire incidents over the past several months. “Add war into the mix and supply can be even further strained,” offered Shon-Roy.

As new semiconductor device fabs come online in the next few years, supply constraints may appear for other gases (B2H6, WF6, NF3, CF-gases) as demand increases are expected to outpace supply.

For more details on the Electronics Gas market segments and growth trajectory go to:

https://techcet.com/product/gases/

Don’t forget to register for the 2022 Critical Materials Conference (CMC) on April 28-29 in Chandler, AZ.

Electronics Gas Market to reach $8.0B by 2024 despite expected COVID-19 impacts

San Diego, CA, March 30, 2019: TECHCET announced that the semiconductor fabrication gases market is forecasted as net positive in revenue growth for Q1, despite COVID-19. Although economic uncertainties for the remainder of the year may slow growth, current indications from the materials supply-chain look like "business as usual."

"Suppliers say that orders are strong," summarizes TECHCET President and CEO Lita Shon-Roy. "However, concerns exist that fabs may start to stock-pile materials to mitigate the possibility of interruption, especially from US suppliers that are now in the throes of the COVID-19 spread."

One recent positive for chip fabs is helium availability, where non-semiconductor demand is expected to ease. Given the COVID19 situation, medical and recreational (party balloons) helium demand will decline, allowing for the current shortage in the semiconductor supply-chain to mitigate sooner than expected. Major new sources like Gazprom, Arzew, and Qatar are scheduled to finally come online later this year.

TECHCET is also tracking potential disruptions in raw materials for critical gases—e.g. germanium for GeH4 and GeF4, fluorspar for HF, tungsten for WF6—has been minimal, because many Chinese suppliers had prepared safety stock for the Lunar New Year break.

Air Liquide, Air Products, Linde, Messer, and SK Materials have all announced increases in global production of gases. The market for both bulk- and specialty-gases is forecasted to grow from US$5.4B in 2019 to US$8.0B by 2024, as shown in the figure below. However, uncertainties exist for 2020 where demand may soften as a result of a prolonged impact of COVID19 on global economies.

TECHCET’s Critical Materials Report™ on Electronic Gases includes market landscape analysis and company profiles of Air Liquide, Linde, TNSC-Matheson, Versum Materials, Air Products, Showa Denko, SK Materials, Air Water, Hyosung, Peric, Kanto Denka Kogyo, and more. To purchase Report go to: https://techcet.com/product/gases/