The Chip Supply Chain Is In Crisis!Important Semiconductor Materials Are Intended To Be Permanently Banned

Recently, according to the British Financial Times, five European countries including Germany, the Netherlands, Denmark, Sweden, and Norway proposed that the EU gradually eliminated tens of thousands of PFAS (permanent chemicals) on Tuesday. This type of chemicals were used for the production of semiconductors, batteries, and aircraft., Auto, medical equipment, etc.In this regard, chip suppliers warn that Europe's implementation ban on PFAS will cause extensive damage to the already tight semiconductor supply chain.

This proposal provides two situations:Complete prohibition of prohibition or based on the availability of alternatives.

Proposal prediction announced on Tuesday shows that the use of the electronic industry for PFAS will increase at a rate of 10%per year, which is mainly due to the rise of chip demand.The report estimates that by 2020, up to 310,000 tons of PFAS will be introduced into the market.

It is reported that PFAS is a collective name for a large type of fluorine -containing organic compounds. It contains nearly 5,000 kinds of industrial production chemicals; and the essential material in semiconductor manufacturing -coolant (electronic fluoride) also belongs to PFAS products,It is widely used for the constant temperature cooling of semiconductor etching equipment, ion injection equipment, and chemical gas deposition equipment.

If this legislative proposal is approved, it will take effect in 2026.According to the draft proposal,Once the ban takes effect, related companies will have a transition time from 18 months to 12 years to introduce PFAS alternatives, depending on the importance of related industries and alternatives.Some industries, such as medical equipment parts, will be allowed to have a transition period for up to 12 years, while other ordinary industries must be adjusted within 18 months.

The importance of PFAS to semiconductor manufacturing is3M companyIt can be seen in the suspension of production.On March 8, 2022, a 3M company that occupied about 80%of the global semiconductor coolant. Its Belgian factory was closed indefinitely due to local environmental protection regulations.Panic.On December 20 of the same year, 3M announced that it would fully withdraw from PFAS production, and worked hard to stop using PFAS in its product portfolio by the end of 2025.

The report also pointed out that as chip manufacturers expand their capacity, some of the most critical PFAS are in short supply.According to executives in the semiconductor industry, due to the strong demand, the most critical PFAS derivatives used in chip manufacturing are PFA -containing fluoride polymers in the past two years.Soaring 70%to 80%,Although the chip industry is currently not dazzling, it is expected that this price will go further this yearRaise 20%.

At present, some manufacturers and enterprise users of permanent chemicals have formed a lobbying group FPP4EU under the European Chemical Manufacturers Association (CEFIC), including 14 companies including BASF, 3M, Bayer, Solvi Group, and Merck.They said the ban will have a huge impact on many daily use products.