[Editor's Note] The semiconductor shortage that persisted from the second half of 2020 to the first half of 2021 led to increased operating rates at semiconductor production lines and continued investment in expanding semiconductor production, including the construction of new fabs. Furthermore, demand for specialty gases, essential in the semiconductor process, is also increasing in line with the growth of the semiconductor market, leading to continued market expansion. Companies specializing in semiconductor specialty gases are actively responding to this market through capacity expansion and new investments, and are also actively developing technologies to adapt to the evolving, advanced semiconductor processes. Accordingly, this magazine has prepared a forum to forecast the second half of the market for special gases for semiconductors.




■ 32 companies specializing in semiconductor gases and precursors are growing at an average annual rate of 17%.

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 specialty 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 at an annual average of over 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 plant, 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 the capacity could not keep up with demand and it was sold out as soon as it was produced.

For krypton, which is used in the 3D NAND etching process, the price has reached an all-time high due to the expansion of 3D NAND production, so krypton distributors are spending more than in the past to secure inventory.

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

■ Continued expansion of major semiconductor specialty 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-high-purity 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.

Korea Mathison Special Gas is said to be expanding its production of Diborane, which had been in tight supply in the first half of the year.

Baekkwang Industry is embarking on a full-scale expansion into the semiconductor specialty gas market by domestically producing high-purity hydrogen chloride (HCl), a product for which Toagosei holds a 90% global market share. The HCl solution has reportedly passed quality testing, and production is expected in the second half of this year. Furthermore, the company will increase its nitrous oxide (N2O) capacity by 2,000 tons, increasing its existing 2,500 tons.

POSCO has also announced its entry into the specialty gases business. The company plans to produce crude rare gases, including neon, xenon, and krypton, using the Gwangyang Steelworks' 100,000 N㎥/h ASU. Product launch is expected in the first half of 2022.

■ Increased demand for special gases due to aggressive expansion and operation of semiconductor and display plants.

In the semiconductor industry, Samsung Electronics is expected to begin operations of 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, strong iPhone 12 sales and the growing adoption of 5G smartphones are expected to drive demand for RGB-type OLED materials. Furthermore, demand for large-size OLED materials is expected to surge, driven by the expansion of production capacity at LG Display's OLED TV line in Guangzhou, China, and the launch of Samsung Display's QD OLED TV line. Shipments of QLED TVs using quantum dot materials are expected to increase by 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.