High-Purity CO2 Shortage Raises New Concerns for Advanced Semiconductor Manufacturing
The semiconductor industry may be facing another supply chain challenge, this time involving high-purity carbon dioxide, a key material used in advanced chip manufacturing. As demand for AI processors, high-bandwidth memory, and advanced packaging continues to surge, even a shortage of supporting chemicals can create pressure across the global technology supply chain.
High-purity CO2 plays an important role in semiconductor production, especially during precision cleaning processes. In chip manufacturing, carbon dioxide can be used in liquid form to dissolve wafer residues and remove contaminants. It can also be used as a gas to clear tiny particles from deep within complex semiconductor structures. These cleaning steps are essential for maintaining yield and performance in advanced chips.
Concerns over CO2 availability began emerging in early June, and industry reports now suggest that raw CO2 production has declined at major oil refineries and petrochemical facilities. Raw carbon dioxide is commonly generated as a by-product of oil refining, petrochemical operations, and hydrogen production. When activity at these facilities slows, the supply of CO2 can shrink quickly.
The current pressure appears to be linked to lower operating rates at petrochemical plants in South Korea, combined with uncertainty in crude oil supply due to ongoing instability in the Middle East. Gas suppliers are reportedly struggling to meet customer demand because there is not enough feedstock available to increase production.
One industry official explained that suppliers cannot deliver as much CO2 as customers want because raw material availability is limited, adding that there is no easy short-term solution to boost output.
Major memory chipmakers, including Samsung and SK Hynix, are believed to keep emergency inventories of high-purity CO2. However, those inventories are said to have fallen below the usual combined one-month level. Samsung reportedly uses around 1,800 to 2,000 metric tons of high-purity CO2 each month, while SK Hynix consumes roughly 600 to 700 metric tons per month.
For now, production at both companies is reportedly continuing without major disruption. However, if the CO2 shortage continues for an extended period, it could create risks for advanced semiconductor manufacturing, particularly in areas such as advanced packaging, HBM production, and 3D NAND processes.
This comes shortly after concerns over another critical semiconductor material, tungsten hexafluoride, which is used in advanced packaging and memory technologies. That shortage was linked to reduced tungsten supply to Japanese gas producers, adding another layer of uncertainty for chipmakers already managing tight supply chains.
The timing is especially important because demand for AI computing hardware remains extremely strong. Data centers, cloud providers, and technology companies are racing to secure high-performance chips, while memory manufacturers are ramping production of advanced components used in AI accelerators.
If shortages of high-purity CO2 worsen, chipmakers could face higher material costs, tighter production planning, and potential supply constraints. That may eventually affect pricing across the broader tech market, especially for AI servers, memory products, graphics processors, and other advanced computing hardware.
While the situation has not yet resulted in major production cuts, the semiconductor industry is closely watching CO2 supply levels. Advanced chip manufacturing depends on a long list of highly specialized materials, and even a disruption in one chemical can have ripple effects across the global electronics market.
