In a strategic move to strengthen supply chain resilience, Taiwan’s leading chip manufacturers are set to begin domestic production of neon gas by 2025. This initiative, driven by the desire for a stable supply of this critical chipmaking material, is a direct response to the disruptions caused by the Ukraine war.
At the forefront of this effort are Taiwan Semiconductor Manufacturing Co. (TSMC), Winbond, and United Microelectronics Corp. (UMC), key suppliers to tech giants like Apple Inc. and Nvidia Corp. Winbond has partnered with Linde LienHwa, a major industrial gas supplier, and China Steel, the largest local steel maker, to establish domestic production by 2025.
Neon gas, primarily sourced from large-scale steel plants, plays a crucial role in the lithography step of chip manufacturing. United Micro is exploring the possibility of purchasing locally produced neon gas from Linde LienHwa, while TSMC is actively collaborating with suppliers to mitigate supply chain disruptions.
The localization of neon gas production is a significant step towards enhancing the reliability of the Taiwanese semiconductor industry. This initiative gained momentum after the war in Ukraine led to a major shortage of neon gas. Taiwan’s Economy Minister, Kuo Jyh Huei, has previously emphasized the nation’s pivotal role in the global semiconductor industry. This move further reinforces Taiwan’s commitment to maintaining a robust and resilient semiconductor supply chain.
At the time of writing, TSMC was down by 2.03% in pre-market trading, while UMC experienced a 1.14% decline, according to Benzinga Pro.
