Japan's two factories are about to halt production in July, causing the price of tungsten hexafluoride, a key gas for chip manufacturing, to surge by 200%.

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The semiconductor supply chain is once again experiencing a shock from raw material prices. As Japan's two major tungsten hexafluoride (WF₆) producers are set to permanently cease operations in July this year, the global supply gap for this key chip manufacturing gas has sharply widened, causing prices to soar by triple digits in the short term. Market tensions may continue until around 2027.

According to TrendForce citing data from China's General Administration of Customs, the price of WF₆ reached $149.79 per kilogram in April 2026, a month-on-month surge of 203.83% and a year-on-year increase of 28.33%.

Meanwhile, Korean suppliers SK Specialty and Foosung announced price hikes of 70% to 90% for 2026 between April and May.

The supply shock is being transmitted throughout the entire semiconductor industry chain. WF₆ is widely used in the production of DRAM, NAND, and logic chips, with particularly intensive demand in 3D NAND—for example, a 200-layer stack design requires about 200 deposition cycles per wafer. Analysts point out that with new capacity construction and customer qualification cycles typically requiring 18 to 24 months, the global market is expected to remain in a tight supply-demand balance until 2027, and prices are likely to stay high.

Japan's Two Plants Cease Production, Global Supply Pattern Faces Reshaping

According to The Elec, Japan's Kanto Denka Kogyo and Central Glass had previously issued early warnings to Korean chipmakers such as Samsung Electronics and DB HiTek regarding potential supply disruption risks. The current inventory of the two Japanese suppliers is estimated to last only until May or June, making the supply outlook for the second half of the year highly uncertain.

More critically, Kanto Denka and Central Glass are expected to permanently cease WF₆ production starting July 2026. It is reported that the global annual WF₆ output is estimated at only 8,000 to 9,000 tons, while these two Japanese suppliers focus on products with a purity of 6N and above, with combined capacity around 2,000 to 2,200 tons—about a quarter of global supply. Their withdrawal will have a substantial impact on the global supply structure.

Prices Surge Across the Board, All Purity Levels Affected

The tightening supply has pushed up prices across all WF₆ purity levels. The current quoted price for 5N grade (purity 99.999%) WF₆ is RMB 1,670 to 1,810 per kilogram, representing a year-on-year increase of 232.7%. The price for 6N grade products has further climbed to RMB 2.2 million to 3 million per ton, up over 190% from early April.

WF₆ production is highly dependent on upstream raw materials, with tungsten powder accounting for 60% to 70% of its production costs. Since 2026, the tightening overseas supply chain and booming semiconductor demand have together exacerbated the global supply gap for high-purity WF₆, prompting major suppliers to raise prices.

Facing the supply vacuum caused by Japan’s exit from the market, other players are accelerating their efforts. China’s WF₆ industry is rising rapidly, with China Shipbuilding Industry Technology leading the field, Haohua Gas and Grownjie in the second tier, and other companies speeding up capacity expansion.

However, analysts point out that new capacity construction and customer qualification cycles typically require 18 to 24 months, meaning even with aggressive expansion by replacement suppliers, the global WF₆ market is unlikely to achieve supply-demand rebalance before 2027, and prices are expected to remain high for an extended period.

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