In the semiconductor industry, there exists a gas with a complex name and minimal usage, yet it remains irreplaceable. This substance, tungsten hexafluoride, has recently ignited significant excitement in the capital markets. The stock price of Peric Special Gases Co.,Ltd. surged from 42.68 yuan per share to 117.60 yuan per share in just over a month and a half, marking a gain exceeding 175%, with a cumulative year-to-date increase nearing 191%.
In mid-May, the company was compelled to issue a public response after three consecutive days of hitting the daily limit-up board. It stated that while inquiries from downstream customers had indeed increased, no new substantial large orders had been finalized. Reports of production cuts by Japanese suppliers were characterized as market rumors yet to be verified. The tension between the company's cautious language and the continuous influx of capital has drawn considerable attention to this market trend.
Tungsten is an indispensable raw material for producing tungsten hexafluoride, accounting for over 60% of the production cost. In early 2025, China began strengthening its export review process for tungsten, leading to a sustained rise in tungsten powder prices, which accumulated an increase of over 400% within two years. This pressure on raw material costs has been transmitted downstream. The price of tungsten hexafluoride rose from approximately 470,000 yuan per ton at the start of 2025 to nearly 900,000 yuan per ton by November of the same year, nearly doubling in less than a year.
As of May 2026, the price of tungsten powder had surged by 325% year-on-year. However, the selling price increase for tungsten hexafluoride has not kept pace, creating a significant cost-price "scissors gap" that continues to pressure domestic producers.
A pivotal shift occurred in early 2026 when China further tightened its export controls on tungsten to Japan, directly cutting off the raw material supply crucial for Japanese tungsten hexafluoride manufacturers. Market reports indicate that two major Japanese suppliers, Kanto Denka Kogyo and Central Glass, which together hold about 25% of the global tungsten hexafluoride supply, have issued supply warnings to their South Korean chip clients. Production reduction plans for the second half of the year appear almost certain. International market prices have adjusted sharply, with some procurement contract unit prices increasing by 70% to 90%. Based on estimates of affected capacity, approximately 30% of the global tungsten hexafluoride supply faces a risk of substantial disruption.
Policy direction has further solidified market expectations. In May 2026, a State Council executive meeting reviewed and passed a draft regulation on mineral resource management, establishing a rigid cap on the total mining volume for strategic minerals like tungsten. This implies long-term constraints on the expansion potential of the domestic supply side.
The upstream industry chain has already responded. In early May, major domestic tungsten smelters, including Jiangxi Tungsten H.C. Starck and Xinsheng Tungsten, entered phases of maintenance and shutdown. While maintaining equipment, they are also working through accumulated inventory, significantly slowing the pace of new capacity release.
Demand, however, is moving in the opposite direction. According to TECHCET, global consumption of tungsten hexafluoride expanded from 4,620 tons in 2020 to 8,901 tons in 2025, representing an average annual growth rate of about 14%. The growth rate in the Chinese market is approximately three times the global average, with domestic demand projected to reach 4,500 tons in 2025, reflecting a compound annual growth rate exceeding 42%.
The core driver of this demand lies in the continued stacking of memory chips. For every additional layer in 3D NAND flash memory, the required amount of tungsten hexafluoride per unit increases. This is a rigid demand dictated by the technological pathway, with no viable short-term alternatives.
Among domestic enterprises, Peric Special Gases holds a relatively leading position. The company pioneered a technical route in 2007 for synthesizing electronic-grade tungsten hexafluoride using nitrogen trifluoride as a raw material, granting it longer process experience than its peers. Its current annual production capacity for tungsten hexafluoride stands at 2,000 tons, making it the world's largest single-site production base for this gas. The product purity reaches 6N grade, meeting the requirements for advanced memory and logic chip manufacturing. Its client roster covers major manufacturers such as TSMC, Micron, SK Hynix, Infineon, SMIC, and Yangtze Memory Technologies.
The company ranks ninth globally and first domestically in terms of total electronic specialty gas revenue, with overseas revenue accounting for approximately 27%. Regarding capacity expansion, a project adding 1,000 tons of annual tungsten hexafluoride capacity is expected to be completed in 2027. Another comprehensive gas project covering 51 types of high-purity electronic gases is progressing simultaneously, with an investment scale of around 870 million yuan.
Financially, growth momentum has accelerated in recent quarters. For the full year 2025, the company's revenue increased by about 16% year-on-year, and net profit grew by about 12%. However, the net profit margin saw a slight decline, with pressure primarily coming from the gross margin of the electronic specialty gases business. Entering 2026, first-quarter revenue reached 701 million yuan, with a year-on-year growth rate accelerating to 36%. Net profit was 101 million yuan, up nearly 17% year-on-year.
To more promptly pass on cost fluctuations to pricing, the company is adjusting its contract structure, gradually compressing product price adjustment cycles from annual contracts to quarterly contracts, with a transition towards monthly adjustments.
However, the current stock price appears to have priced in many expectations that have not yet materialized. The company explicitly stated in its announcement that no new large orders have been signed. There is significant uncertainty regarding whether increased downstream customer discussions will ultimately translate into contracts and the substantive impact on profits.
Nevertheless, entering the supply chain of leading wafer fabs requires a qualification cycle of 12 to 18 months for tungsten hexafluoride, meaning order transitions do not happen overnight.
At the industry level, several domestic companies are simultaneously ramping up tungsten hexafluoride capacity. Firms like Haohua Chemical Technology, HeYuan Gas, and Hubei Green Lining have new production lines under construction or in trial production. Once this new capacity is concentratedly released, the currently tight supply-demand balance could come under renewed pressure.
The restructuring of the supply chain is a genuine trend, and the potential benefits for leading companies are relatively clear. However, the true measure of their performance will ultimately be validated by financial reports.
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