China’s tungsten export restrictions could deepen global chip supply shortages
China’s tighter controls on tungsten exports are creating fresh pressure on the global semiconductor supply chain, with Japan now facing a serious shortage of tungsten hexafluoride, a specialty gas used in advanced chip manufacturing.
Japanese chemical producers Kanto Denka and Central Glass have reportedly informed major semiconductor customers, including Samsung, SK Hynix, and TSMC, that they plan to stop producing tungsten hexafluoride from July 1, 2026. The decision is tied to difficulties in securing the high-purity tungsten powder needed to manufacture the gas.
Tungsten hexafluoride is not a widely known material outside the chip industry, but it plays a vital role in producing modern semiconductors. It is used to deposit tungsten into extremely small structures inside chips, helping create the microscopic connections required in advanced logic and memory products.
The material is especially important for 3D NAND flash memory, HBM memory, and cutting-edge chips built on advanced process technologies. In these products, tungsten is used to fill tiny vertical channels and interconnects that link different layers of transistors and memory cells. As chip designs become denser and more complex, the need for high-quality tungsten-based materials continues to grow.
The core problem for Japanese suppliers is their dependence on China for high-purity tungsten powder. This raw material reportedly accounts for roughly 60% to 70% of the production cost of tungsten hexafluoride. After China tightened export regulations, shipments of highly pure tungsten powder to Japan are said to have dropped sharply, leaving producers with limited inventories and few immediate alternatives.
Japanese companies reportedly attempted to keep production running for several months by using existing stock and searching for new supply sources. However, the lack of reliable replacement material has made continued production increasingly difficult.
The impact could spread across the semiconductor industry. Samsung and SK Hynix are two of the world’s largest memory manufacturers, while TSMC is the leading contract chipmaker for advanced processors used in smartphones, data centers, AI systems, and high-performance computing. If tungsten hexafluoride supply becomes constrained, manufacturers may face higher costs, production delays, or tighter output for certain advanced chips.
This development comes at a time when demand for DRAM, NAND flash, and HBM is already rising quickly. Artificial intelligence servers, high-end GPUs, data center upgrades, smartphones, and enterprise storage products are all increasing pressure on memory supply. Any additional shortage in critical semiconductor materials could push prices higher across SSDs, memory modules, AI hardware, and other electronics.
Chinese tungsten-related manufacturers may benefit from the situation. With China holding a dominant position in tungsten supply and processing, local producers could gain more pricing power as overseas companies struggle to secure enough material. If China becomes one of the few regions capable of supplying tungsten-based semiconductor gases at scale, international buyers may have to pay higher prices or rely more heavily on Chinese supply chains.
The shortage also highlights a broader issue in the semiconductor industry: many advanced chips depend on highly specialized materials sourced from a small number of countries or suppliers. Even when chip fabrication plants are located in Taiwan, South Korea, Japan, the United States, or Europe, production can still be disrupted if one critical material becomes unavailable.
For now, the tungsten hexafluoride supply issue is another warning sign for the global chip market. With advanced memory demand climbing and semiconductor manufacturing becoming more material-intensive, disruptions in specialty gases and raw materials could have a much larger impact than many consumers expect.
If alternative sources are not developed quickly, the industry may face higher semiconductor production costs, tighter memory supply, and continued price increases for devices that rely on advanced chips.
