Two Major Japanese Suppliers to Halt Production in July, Tungsten Hexafluoride Prices Surge Over 200% in a Single Month
Alina Collins
Japan's Kanto Denka and Central Glass will permanently stop producing tungsten hexafluoride in July, removing roughly one-quarter of global capacity; spot prices already jumped 203% month-on-month in April, pushing a critical chipmaking gas into structural shortage.
What is tungsten hexafluoride, and why can't chips do without it?
Tungsten hexafluoride (WF₆) is a specialty gas used to deposit an ultra-thin tungsten layer onto wafers — it fills the tiny wires that connect transistors inside a chip.
Demand is heaviest in 3D NAND flash — memory chips that stack storage cells vertically like floors in a building. A 200-layer design requires roughly 200 deposition cycles per wafer, each consuming WF₆.
This means → WF₆ is not an optional input. It is one of the highest-volume, least compressible consumable materials in advanced chipmaking.
Two Japanese plants are shutting down — how big is the gap?
Kanto Denka Kogyo and Central Glass are expected to permanently cease WF₆ production from July 2026, with combined capacity of roughly 2,000–2,200 tonnes.
In plain terms = about one-quarter of the world's annual WF₆ output will simply disappear.
Both companies have warned Samsung Electronics, DB HiTek, and other Korean chipmakers that existing inventory may last only through May–June; the second-half supply outlook is highly uncertain.
How far have prices moved?
According to TrendForce, citing China customs data, WF₆ spot prices hit $149.79 per kilogram in April — up 203.83% month-on-month and 28.33% year-on-year.
By purity grade: 5N (99.999%) WF₆ is quoted at RMB 1,670–1,810/kg, up 232.7% year-on-year; 6N product has climbed to RMB 2.2–3.0 million per tonne, up over 190% since early April.
Korean suppliers SK Specialty and Foosung announced 70%–90% price increases for 2026 between April and May. This reflects a chain-wide cost pass-through — price pressure has spread from China's spot market into Korean long-term contracts.
Why are upstream costs adding fuel?
WF₆ production depends heavily on tungsten powder, which accounts for 60%–70% of manufacturing cost.
This means → even setting aside the Japanese shutdowns, tightening in the upstream tungsten supply chain is independently pushing WF₆ production costs higher.
In plain terms = this is a squeeze from both ends — capacity is shrinking while raw-material costs are rising.
How fast can Chinese substitutes fill the gap?
China's WF₆ industry is scaling up: CSSC Technology leads, with Hua Hong Gas and Grand Gas forming a second tier.
But building new capacity and clearing chipmakers' qualification audits typically takes 18–24 months.
This means → even at full speed, the global WF₆ market is unlikely to rebalance before 2027 — the shortage window stretches at least another year and a half.
Content is for reference only, not financial advice.