Although production of krypton (Kr) is limited worldwide as a rare gas, it is essential for the production of semiconductor NAND flash, and an explosive increase in demand is expected. SK Hynix, a major customer, is reportedly making various efforts to secure krypton.

According to semiconductor industry sources, SK Hynix is known to have recently reviewed facilities to recycle krypton used in NAND flash.

The review of such facilities is due to the explosive growth in demand for krypton, which is essential for the 3D NAND etching process and whose production and supply are limited.

Krypton production is generally done by concentrating oxygen in an ASU of more than 50,000 N㎥ per hour, but there is a risk of explosion, and it is not easy to produce pure krypton as it is present in the air at only 1.14 ppm.

Additionally, recently, large ASUs capable of producing krypton have been demolished worldwide for economic reasons, which has led to a decline in krypton production.

As demand increases, production cannot be increased in the short term, resulting in a persistent shortage of krypton.

Meanwhile, demand for krypton is expected to continue to rise.

Semiconductor industry insiders predict that the current tight supply and demand for krypton will lead to a supply shortage next year, and that demand could increase two to three times the current level within the next two to three years.

As a result, prices continue to rise. The import price of krypton continues to rise, averaging $38 per kg in 2018, but rising 111% year-on-year to $82 per kg in 2019, and 143% year-on-year to $199 per kg in 2020. As of April this year, the average price was $320 per kilogram, a 61% increase from the previous year.

It is known that the recent market price is being traded at a minimum of $2.50 per liter.

Accordingly, SK Hynix, the largest user of krypton in Korea, is known to be struggling to respond to the increasing demand for krypton, and it is known that a plan to recycle krypton is being discussed.

However, according to industry insiders, it will not be easy to recycle or reuse krypton, or recapture it in the process, as it is not even known whether the exact technology exists at present, regardless of whether it is feasible.

In particular, when a neon shortage occurred six years ago, neon recycling, alternative materials, and increased production were discussed, but when the technology was actually developed, the neon shortage was resolved, and the efforts put into developing the technology were in vain.

Separately, SK Hynix has been found to have actively expanded its supply chain for krypton, increasing its suppliers and securing krypton.

It is known that this is because rumors about Samsung Electronics' continued use of Krypton have been circulating.

Currently, Samsung Electronics uses xenon in its 3D NAND process, but xenon has a lower production volume than krypton and is more than 10 times more expensive.

Accordingly, rumors of Samsung Electronics' use of krypton have been circulating in the industry, and if this becomes a reality, it is predicted that a krypton crisis will occur.

Meanwhile, POSCO has announced the production of rare gases in Korea, and actual products of xenon and krypton are said to be released after 2022.