31 Aug 2022

Semiconductors are the main application scenarios for specialty gases. According to "Global Electronic Specialty Gases Market Research 2022", the global electronic specialty gases market size will be USD 4.423 billion in 2021.

However, rising inflation, soaring energy prices, the impact of COVID-19, and other reasons have caused the semiconductor industry to enter a downward cycle and weaken consumer electronics demand.

Chip and Science Act

On August 9, the United States signed the "Chip and Science Act", which provides subsidies and incentives for the development of the US semiconductor industry and restricts chip manufacturers from expanding or building new factories in China.

According to forecast media reports on August 10, the stickiness and duration of this round of higher global inflation may be more severe than ever. The agency predicts that the global sales of the consumer electronics mobile phone industry will decline in 2022, down from 1.5 billion mobile phones worldwide in a year, which may decrease by 200-300 million units.

capital investment and expansion

In addition, silane, disilane, dichlorosilane, and other silicon-based gas projects have increased significantly

At present, major special gas companies in China are continuously increasing capital investment and expanding production capacity. According to public information, in the next three years, there will be more than 3 Nitrogen trifluoride enterprises above 10,000 tons and more than 3 high-purity ammonia enterprises above 10,000 tons.

According to the statistics of new/proposed projects, in the next few years, there will be about 10 related projects of electronic grade hydrogen chloride, which is the largest number of projects. In addition, silane, disilane, dichlorosilane, and other silicon-based gas projects have also increased significantly.

Rare gases 

Rare gases (krypton, neon, and xenon) are mainly used in the fields of semiconductors and aerospace electric propulsion. Due to the conflict between Russia and Ukraine, the price of rare gas has skyrocketed. Due to the recent weak demand in the memory chip market, rare gas prices have begun to decline, and some traders have even sold at a loss.

Aerospace electric propulsion is the second largest field of krypton gas demand. The rare gas is known as "space energy". The competition between major powers has risen from the ground to space, and each is interested in developing its own "Starlink" plan.