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Why semiconductor raw materials are rising in price due to a series of power crises

Semiconductor manufacturing relies on many different raw materials at various stages of the process. That is fine in normal times, but now we are facing a serious problem of global energy supply.

In particular, the shortage of electricity in China has affected the supply of several materials heavily used in semiconductors, including the raw materials tungsten, silicon, and phosphorus. As a result, prices of raw materials have increased by up to 300%.

In one case, 30 magnesium smelters in China's Shanxi Province were ordered by the government to suspend operations until the end of this year to save electricity. As a result, magnesium prices ( ) soared more than 100% overnight. Magnesium is not used much in many semiconductors, but it is still needed, and China supplies 90% of the world's supply.

Electricity shortages are a major problem not only in China, but in other countries as well, and it is not enough for China to import coal. In India, for example, a series of unconnected problems have reduced the availability of coal, causing prices to skyrocket and power projects to nearly shut down. More to the point, the faster-than-expected recovery of COVID-19 has led to energy shortages almost everywhere.

What should semiconductor manufacturers do in response?

Many of these raw materials are transformed into ultra-pure specialty gases used to deposit materials during semiconductor manufacturing. Reducing the use of these gases would reduce the potential for increased costs and gas shortages.

But how exactly can we reduce usage? The answer is to run semiconductor processes more efficiently. This means better control, more efficient gas consumption, higher throughput, less (hazardous) waste, and more environmental sustainability. For plant operators, the benefits are many-fold.

Atnerp's Aston is specifically designed to provide on-the-spot, real-time, chemistry-specific data on process gases for semiconductor applications. This allows manufacturing processes to run more efficiently and with fewer specialty gases, thereby addressing rising consumable prices.

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