Major domestic and overseas makers such as Samsung Electronics and SK Hynix are increasing their production facilities due to the boom in semiconductors, raising concerns that supply shortages may occur by 2019.

However, it is pointed out that even the government and the domestic semiconductor industry is not able to fully grasp the supply and demand status of more than 1000 kinds of materials for semiconductor manufacturing.

According to industry sources on December 27, there are concerns that a supply shortage of semiconductors may become a problem if Samsung Electronics` Pyeongtaek plant`s second floor, SK Hynix`s Cheongju and Wuxi`s capacity additions are completed next year and next year.

An affiliate of an anonymous semiconductor company stated, "Currently, there is a shortage of IPA (isopropyl alcohol) supply, which is a semiconductor process cleaner, due to capacity expansion and usage increase." With the addition of Samsung Pyeongtaek and Hynix Cheongju, "We will have a shortage problem."

Samsung Electronics and SK Hynix have pointed out that there is no problem, as they have already secured volume due to diversification of semiconductor material supply lines and forecasts. However, in 2019, when the two companies start full-scale expansion facilities operation, it is observed that supply and demand imbalance of some materials will inevitably be inevitable.

Once Samsung Electronics begins mass production of DRAM at some Hwaseong plant and Pyeongtaek 2nd floor, its production volume is expected to increase from 360,000 sheets per month (based on wafers) to 600,000 sheets by 2019.

This is not the only source of supply shortages.

"A supply of helium, tungsten slurry, ceria slurry, WF6 (tungsten hexafluoride) gas, etc. may not be smooth," an official from a medium-sized semiconductor foundry pointed out.

In the case of helium gas, seven Arab nations, including Saudi Arabia, recently declared a ceasefire with Qatar, which accounts for 30% of world helium production in July.

The expansion of semiconductor material manufacturers also supports this situation. WF6, etc., said it will expand its semiconductor special gas production facilities to KRW 55.4 billion last month. SK Materials is currently investing in a 2500 tonne / year NF3 production facility by November next year. As the industry has more than a thousand semiconductor materials, other materials are likely to be similar.

The reason for the shortage of semiconductor material supply is that the semiconductor material market is growing at a rapid pace thanks to rapid demand growth in downstream industries.

According to the International Semiconductor Equipment Association (SEMI), the global semiconductor fab process (pre-process) material market is expected to grow 11.3 % from USD 24.7 billion last year to USD 27.5 billion this year. That was USD 2.2 billion more than last year`s forecast of USD 25.3 billion.

According to the World Semiconductor Market Statistics (WSTS), the world semiconductor market is expected to reach USD 408.6 billion (about KRW 443 trillion), up 20.6 % from the previous year.

Chinese semiconductor makers, including Tsinghua Uni Group, Fujing Jinhua Semiconductor and Changmang Memory (YMTC), are expected to begin full-scale production of memory semiconductors from next year.

However, accurate information on the supply and demand situation of semiconductor materials and the localization rate of materials cannot be found anywhere at present. The Ministry of Commerce, Industry and Energy cited the localization rate of semiconductor materials as 48.5% as of the end of 2012, but it has not been able to publish statistics since then.

An expert from the Korea Semiconductor Industry Association stated, "Since 2013, Samsung Electronics and SK Hynix have not disclosed material-related information because of confidential company information such as semiconductor production volume.

An expert from the Ministry of Industry said, "Since there are only hundreds of companies involved in semiconductor materials, they are not making semiconductor materials.

Meanwhile, an industry expert said, "Unless an unexpected event such as the Great East Japan Earthquake occurred in the past, Samsung Electronics and SK Hynix are unlikely to experience any disruption in semiconductor production due to lack of materials." However, considering the challenges, the government should first grasp the current state of the materials industry and find ways to foster relevant industries such as localization."

By Park Jung Il comja77@


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