[Editor's Note] The semiconductor shortage that continued from the second half of 2020 to the first half of 2021 led to continuous investment to expand semiconductor production, such as increasing the operating rate of semiconductor production lines and building new fabs. In addition, special gases essential for semiconductor processes are also increasing in demand along with the growth of the semiconductor market, and the market is continuously expanding. Accordingly, specialized semiconductor special gases companies are also actively responding to the market through expansion and new investments, and are also actively developing technologies to keep up with the changing advanced semiconductor processes. Accordingly, this magazine has prepared a space to look ahead to the second half of the special gas market for semiconductors.




■ 32 companies special gas and precursor companies for semiconductors achieve rapid growth of 17% per year

Companies related to specialty gases and precursors for semiconductors and displays have maintained steady growth over the past three years.

Looking at the 2020 business performance of 32 companies related to special gases and precursors for semiconductors and displays, sales in 2020 increased by 14% year-on-year to KRW 7.737 trillion, and operating profit increased by 12% year-on-year to KRW 1.2753 trillion. Net income increased 12% year-on-year to KRW 950.4 billion.

Sales have been growing steadily at an annual average of more than 17%, reaching KRW 5.6251 trillion in 2018, KRW 6.7927 trillion in 2019, and KRW 7.737 trillion in 2020.

This increase in performance is due to increased sales resulting from increased operating rates at customers such as Samsung Electronics and SK Hynix.

In particular, in 2020, despite the adverse impact of COVID-19, the company continued to grow due to a significant increase in new demand for special gases resulting from the operation of Samsung Electronics' Pyeongtaek plant, SK Hynix's M16, and LG Display's OLED TV line in Guangzhou, China.

In particular, demand suddenly increased in the first half of 2021, and supply was tight for some items.

In the case of diborane (B2H6), which is used as a semiconductor doping gas, there was a situation where production was sold immediately after it was produced, with no stock, as capacity could not keep up with demand.

For krypton, which is used in the 3D NAND etching process, prices have hit an all-time high due to the expansion of 3D NAND production, forcing krypton distributors to spend more than before to secure inventory.

In the case of nitrogen trifluoride (NF3), which accounts for a significant portion of domestic special gas usage, the first quarter was quite tight, and the situation remained tight in the second quarter to the extent that each company was adjusting its volume.

■ Continued expansion of major semiconductor special gases

In the case of ultra-high purity nitrogen (N2), which is most widely used in semiconductor and display processes, continuous expansion is taking place along with expansion of major semiconductor companies.

Air Products and Linde Korea are supplying ultra-pure nitrogen and other materials to Pyeongtaek Plants 1 and 2, while Linde Korea and Airfirst are accelerating the construction of a new ASU plant to support Samsung Electronics’ Pyeongtaek Plants 3 and 4.>
SK Materials Airplus is operating eight 30,000 N㎥/h ASUs at SK Hynix M16 and is additionally operating two 30,000 N㎥/h ASUs at SK Hynix Cheongju Plant.

It is reported that Korea Mathison Special Gas is expanding its production of Diborane, which had been in tight supply in the first half of the year.

Baekkwang Industry is moving into the semiconductor specialty gas market in earnest by domestically producing high-purity hydrogen chloride (HCl), of which Toagosei has a 90% share of the global market. It is known to have passed the quality test, and it is expected to be introduced in the second half of this year. In addition, it will increase the supply capacity by 2,000 tons to the existing 2,500 tons of nitrous oxide (N2O).

POSCO has also announced its entry into the special gas business. The plan is to produce crude rare gases using the 100,000 N㎥/h ASU of Gwangyang Steelworks in the rare gas sector, including neon, xenon, and krypton. The product is expected to be released in the first half of 2022.

■ Increase in special gas demand due to aggressive expansion and operation of semiconductor and display industries

In the semiconductor industry, Samsung Electronics is expected to start operating its Xi'an 3D NAND plant and expand DRAM operations at its Pyeongtaek Plant 2 in the second half of 2021.

In addition, the demand for special gases is expected to increase due to the peak season in the third quarter, the advancement of 3D NAND, the miniaturization of DRAM, and the miniaturization of non-memory foundries.

In the display sector, demand for RGB type OLED materials is expected to increase due to brisk sales of the iPhone 12 and the expansion of 5G smartphones. In addition, demand for large-size OLED materials is also expected to surge due to the expansion of production capacity at LG Display’s Guangzhou OLED TV line in China and the operation of Samsung Display’s QD OLED TV line. Shipments of QLED TVs using quantum dot materials are expected to increase 35% compared to the first half of the year.

In addition, Chinese LCD companies are expected to carry out additional expansion.

By product, NF3 is expected to see a price increase and its profitability is also expected to improve significantly.

In addition, shipments of special gases such as WF6, CH3F, CH2F2, and C2F6 are also expected to increase significantly.