Hydrofluoric Acid Prices Surge 30% as AI Chip Demand Strains Supply
Prices for hydrofluoric acid, a critical wet chemical used to etch and clean silicon wafers during chip production, have jumped 20% to 30% amid surging demand from artificial intelligence accelerators and high-bandwidth memory manufacturers. Media reports indicate that the shortage stems from the difficulty in achieving the high purity levels required for advanced semiconductor fabrication, underscoring a supply constraint as foundries expand output.
Formosa Daikin, a joint venture between Formosa Plastics Group and Japan’s Daikin Industries, is expanding capacity to address the tight market. The JV commands 55% of the chip chemical market in Taiwan and serves as the primary supplier to foundry giant TSMC. To meet demand, Formosa Daikin is currently expanding two production plants, adding 6,500 tons of hydrofluoric acid and 2,800 tons of ammonium fluoride capacity.
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@dnystedtShortages of a key chemical used in chip production, hydrofluoric acid – a wet chemical used in etching and cleaning silicon wafers – have driven prices up 20%-30% so far amid heavy demand from AI chips (GPUs, ASICs) and HBM memory, media r