Materials (Critical Inputs)
Semiconductors rely on a wide range of materials that must meet the highest levels of purity and consistency. Any contamination in gases, chemicals, or substrates can compromise yields across entire wafer lots. This layer of the supply chain is therefore one of the most sensitive, globally constrained, and geopolitically exposed.
Inputs span from mined critical minerals to highly refined specialty gases and electronic-grade chemicals. These materials flow continuously into fabrication plants, forming the lifeblood of wafer processing. Supply resilience is a top priority as shortages of neon, photoresists, or SiC substrates can halt production worldwide.
Scope
- Critical Minerals: silicon, gallium, indium, cobalt, rare earths
- Critical Materials: high-purity quartz, photoresist polymers
- Raw Materials (Mining)
- Pure Materials (Refining)
- Process Gases: neon, argon, fluorine, nitrogen trifluoride
- Process Chemicals: acids, solvents, slurries, cleans
Segment Mapping
| Segment | Examples | Representative Companies | Notes |
|---|---|---|---|
| Critical Minerals | Si, Ga, In, REEs | Mining majors, upstream processors | Base layer of the value chain |
| Refined Materials | High-purity quartz, photoresist polymers | Specialty refiners | Purity measured in ppb or ppt |
| Process Gases | Ne, Ar, F2, NF3 | Air Liquide, Linde, Messer | Essential for litho, etch, deposition |
| Process Chemicals | Acids, solvents, slurries, cleans | Mitsubishi Chem, BASF | Critical for CMP and wet cleans |
Market Outlook & Adoption
| Rank | Material Segment | Drivers | Constraints |
|---|---|---|---|
| 1 | Process Gases | Lithography, etch, deposition demand growth | Ukraine/Russia supply risk; few refining hubs |
| 2 | SiC / GaN Substrates | EV inverters, fast charging, AI datacenter power | Low wafer diameter availability, boule growth throughput |
| 3 | Photoresists & Polymers | EUV lithography and advanced packaging | Japan/Korea supply concentration; export controls |
| 4 | High-Purity Chemicals | CMP, cleans, deposition | Contamination risk; costly purification logistics |
Representative Companies
- Air Liquide – industrial and specialty gases
- Linde – nitrogen trifluoride, fluorine, argon
- SUMCO – silicon wafers
- GlobalWafers – silicon and SiC wafers
- JSR, Tokyo Ohka Kogyo – photoresists
Top Risks & Bottlenecks
- Geopolitical concentration of neon, rare gases, and REEs
- Export controls on photoresists and advanced polymers
- High-purity supply chains require decades of qualification
- Logistics and cost challenges for electronic-grade chemical handling
KPIs to Track
- Supplier count per material segment
- Wafer substrate defect density (cm^-2)
- Process gas purity levels (ppb contaminants)
- Lead times for critical shipments
FAQs
- Why is neon so critical? – Neon is required for deep-UV lithography lasers. Over 70% of neon refining has historically been in Ukraine, creating major supply risk.
- What’s the difference between critical minerals and critical materials? – Minerals are extracted raw resources (e.g., silicon, gallium), while materials are the refined, electronic-grade forms (e.g., high-purity silicon wafers, photoresist polymers).
- Why are gases and chemicals recurring risks? – Unlike wafers or equipment, gases and chemicals are consumed continuously. Even brief supply disruptions can stop fab operations.
