Semiconductor and display industries are fighting for supply and demand of Neon gas. Neon gas is a special gas that is vital in semiconductor and display manufacturing processes. Although demand doubled as Korean companies are increasing its factories’ operation rate this year, production factory had to be stopped due to civil war in Ukraine which is a major producer. Its price skyrocketed 20 times just in half of a year, and semiconductor and display industries are in critical situation as it is predicted that upward trend of price will continuously increase.
One Eximer Laser Gas Cylinder that cost $1200 in end of last year increased more than 20 times at $25,000 in end of July.
Eximer Laser combines special gases such as Neon, Fluorine, and Argon, and Argon gas takes up 95%. Semiconductor and Display use Eximer Laser on Argon Fluorine Exposure equipment and Low Temperature Poly Silicon (LTPS) TFT-type Eximer Laser Annealing (ELA) respectively.
The reason why its price skyrocketed is because Korean semiconductor companies such as Samsung Electronics, SK Hynix, and etc. regularized production of 3D-NAND and fine-patterning process increased more than 4 times.
Supply and demand of Neon gas became even harder as due to occurrence of civil war in Ukraine and flood. As factories stopped operating in early June due to civil war, price went up 10 times and it went up twice more within just in a month. Its price soared 20 times compared to previous price.
It is known that Samsung Electronics don’t have big problems as they secured supplies since last year. However SK Hynix, Samsung Display, and LG Display are having hardships with supply and demand because they found out about it late.
“SK Hynix started looking 2 months ago, and Korean display companies recently learned that price skyrocketed as they went out for additional purchase due to stock exhaustion. It is possible for previous customers to purchase at $25,000, but companies that newly add supplies or order for the first time have to pay more than $50,000. Due to this situation, it is proven once again that semiconductor surpasses display from purchasing capability perspective.” A person in the industry talked about current situation of how many companies have to pay high price for Neon gases.
Although price is a problem, it is a bigger problem that it is difficult to even secure supply. Some companies are overlooking price and requesting import companies if they can secure just supply rate.
A person in different industry predicted that the price will increase up to $55,000 hereafter as imbalance in supply and demand continues. That person also said that movement where some display companies are going from Eximer Laser to Green Laser is booming.
End of 2014: $1,200
July of 2015: $25,000
End of 2015: $55,000 (Estimation)
Staff Reporter Sung, Hyeonhee | sunghh@etnews.com