Samsung Electronics is pursuing the localization of xenon (Xe) gas, a key semiconductor material, together with POSCO.

Samsung Electronics announced on the 27th that it has signed a memorandum of understanding with POSCO for 'business cooperation on xenon gas for semiconductors' and will receive xenon gas starting in 2024.

Xenon gas is one of the rare gases essential for the production of advanced semiconductors such as 3D V-NAND. Since it is present in minute quantities in the air, it is mainly produced at steel mills equipped with large air separation devices, and currently, the entire supply is imported.

Samsung Electronics plans to pursue the localization of key semiconductor materials and diversification of its supply chain through this collaboration amidst intensifying global supply chain issues.

POSCO plans to develop equipment technology to extract xenon gas from the air separation unit at the Gwangyang Steelworks by 2023, begin production in 2024, and expand production volume by 2027. Samsung Electronics plans to apply the xenon gas produced by POSCO to its production lines after obtaining quality certification.

Jeon Jun-young, Vice President and Head of Purchasing at Samsung Electronics’ DS Division, stated, “The cooperation between Samsung Electronics and POSCO is expected to contribute to the localization of core semiconductor materials as well as the development of the domestic semiconductor materials industry.”

"Yoon Deok-il, Head of Management Planning at POSCO, said, 'I consider it meaningful that we are able to pursue the localization of xenon following neon by utilizing POSCO's facilities,' adding, 'We will contribute to establishing a stable supply chain for rare gases in the domestic semiconductor industry through close cooperation with Samsung Electronics.'"