Another raw material price shock is hitting the semiconductor supply chain. With two major Japanese producers of tungsten hexafluoride (WF₆) set to permanently cease production this July, the global supply shortfall for this critical chip manufacturing gas has widened sharply, triggering triple-digit price increases in the short term. Market tightness is expected to persist until around 2027.
According to data from China's General Administration of Customs cited by TrendForce, the price of WF₆ reached $149.79 per kilogram in April 2026, surging 203.83% month-on-month and up 28.33% year-on-year.
Concurrently, South Korean suppliers SK Specialty and Foosung announced price hikes of 70% to 90% for 2026 between April and May.
The supply shock is rippling through the entire semiconductor supply chain. WF₆ is widely used in the production of DRAM, NAND, and logic chips, with demand being particularly intensive in 3D NAND manufacturing—for example, a single 200-layer design wafer requires approximately 200 deposition cycles. Analysts note that, given the typical 18 to 24-month cycle for building new capacity and obtaining customer qualification, the global market is expected to remain in a tight supply-demand balance until 2027, with prices likely to stay elevated.
Japanese Plant Closures Reshape Global Supply Landscape
As reported by The Elec, Japanese firms Kanto Denka Kogyo and Central Glass have previously warned South Korean chipmakers, including Samsung Electronics and DB HiTek, about potential supply disruptions. Existing inventories from these two Japanese suppliers are estimated to last only until May or June, creating significant uncertainty for supply in the second half of the year.
More critically, Kanto Denka and Central Glass are expected to permanently halt WF₆ production starting July 2026. It is understood that global annual WF₆ output is estimated at only 8,000 to 9,000 tons. These two Japanese suppliers specialize in high-purity products of 6N and above, with a combined capacity of about 2,000 to 2,200 tons, representing roughly a quarter of global supply. Their exit will have a substantial impact on the global supply structure.
Prices Soar Across All Purity Grades
Tightening supply has driven up prices for WF₆ across all purity levels. 5N-grade (99.999% purity) WF₆ is currently quoted at RMB 1,670 to 1,810 per kilogram, a 232.7% increase year-on-year. Prices for 6N-grade products have climbed further to RMB 2.2 million to 3 million per ton, rising over 190% since early April.
WF₆ production is highly dependent on upstream raw materials, with tungsten powder accounting for 60% to 70% of its production cost. Since 2026, tightening overseas supply chains and surging semiconductor demand have jointly exacerbated the global supply-demand gap for high-purity WF₆, prompting major suppliers to initiate price increases.
Facing the supply vacuum created by the Japanese capacity exit, other market participants are accelerating their plans. China's WF₆ industry is rapidly emerging, forming a competitive landscape led by Cssc Science&Technology Co.,Ltd. (ASX: 600072), with Haohua Gas and Gelangji as the second tier, while other firms are also speeding up capacity expansion.
However, analysts point out that the cycle for building new capacity and securing customer qualification typically takes 18 to 24 months. This means that even with alternative suppliers actively expanding production, the global WF₆ market will struggle to rebalance supply and demand before 2027, and prices are expected to remain high for an extended period.
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