The hydrogen fluoride is imported from China and processed by a domestic company, the source said, though Samsung has not exposed the particular companies involved. The chemical is used by chipmakers in applications including etching silicon wafers. 'We have conducted tests of [hydrogen fluoride] from non-Japanese sources for some production as part of our effort to diversify our supply sources,' a Samsung insider said Wednesday.

 

The company initiated testing hydrogen fluoride from suppliers outside Japan after Tokyo tightened export controls on semiconductor manufacturing materials in July. While China is the most extensive supplier of hydrogen fluoride to South Korea, Japan holds a near-monopoly on the ultrapure gas needed for chipmaking, with Stella Chemifa and Morita Chemical Industries controlling nearly 90% of the market between them. Japanese players import lower-quality hydrogen fluoride from China and process it domestically before exporting it to markets such as South Korea.

 

Samsung compatriot SK Hynix is also examining alternatives to Japanese etching gas. Yet regardless of the curbs, chipmakers are reluctant to switch more fully to hydrogen fluoride from other sources. And in a positive sign for the supply outlook, the Japanese government approved a shipment of the chemical to South Korea in late August.

 

'If there's a stable supply of Japanese-made [hydrogen fluoride], we'll keep using it,' a source in the semiconductor manufacturing industry said. 'The steps underway now are preparations in case we can't source it from Japan.'

 

TRONSERVE