Shortage of high-purity CO2 threatens semiconductor production in South Korea

Huo Xing Finance reports that on June 28, analyst Jukan of Critini Research cited industry sources indicating that procurement of high-purity carbon dioxide used in advanced semiconductor processes has raised warning signs. The root cause is not demand-side pressure, but a sharp decline in upstream CO2 raw material production, due to reduced operating rates at oil refineries and petrochemical plants, which has significantly cut CO2 output as a byproduct. Semiconductor manufacturers and suppliers typically maintain inventories of about two weeks each, totaling approximately one month’s usage—but industry participants generally agree that current stock levels have now fallen below this critical threshold. Industry data shows Samsung Electronics consumes approximately 1,800 to 2,000 tons of high-purity CO2 per month, while SK Hynix consumes about 600 to 700 tons per month. Although production at both companies has not yet been interrupted, inventory buffers continue to shrink, and procurement efforts have intensified significantly. Even with price increases, securing additional supply in the short term remains difficult due to physical constraints stemming from upstream raw material shortages. The price of liquid CO2 has risen by approximately 20% since the beginning of the year, and the industry expects supply tightness to persist through year-end. Major South Korean suppliers of high-purity CO2 include Taekyung Chemical, Sundo Chemical, Dongkwang Chemical, and SK Air Plus, with Taekyung Chemical widely regarded as the industry leader. High-purity CO2 is extensively used in supercritical cleaning processes for advanced nodes—under supercritical conditions, CO2 exhibits both the dissolving power of a liquid and the penetrating ability of a gas, enabling it to reach into extremely narrow pattern gaps to remove residues and contaminants, which is critical for advanced chips with narrow line spacing and high step differences. CO2 raw material is derived as a byproduct from oil refining, petrochemical processing, and hydrogen production. Instability in crude oil supply and demand triggered by the U.S.-Iran conflict and Middle East tensions has led to reduced operating rates at domestic petrochemical plants, directly impacting semiconductor materials. As a materials expert noted: “Following helium, anhydrous hydrogen fluoride, and PGMEA, CO2 is now also facing issues—the risks from Middle Eastern crude oil are repeatedly spilling over into the semiconductor materials sector, underscoring the deep interconnection between the materials supply chain and petrochemical byproducts.”