A critical material for semiconductor manufacturing is facing a supply warning.
Japanese suppliers Kanto Denka Kogyo and Central Glass have notified Korean chip giants Samsung Electronics and DB HiTek of a potential supply disruption for Tungsten Hexafluoride (WF6) gas. They cited difficulties in procuring raw materials, signaling that while current inventories might last until June, the second half of the year is uncertain. This is significant because WF6 is the workhorse gas used to form the microscopic metal wiring that connects components inside a chip. Any disruption can directly impact the production of both memory and logic chips.
At first glance, this issue seems tied to the recent Iran war, which has choked the Strait of Hormuz and created a global logistics crisis. While the war is an immediate trigger, the real story is a collision of a new shock with a pre-existing problem.
The causal chain starts with the raw material itself: tungsten. First, China, which dominates global tungsten production, implemented new export controls in February 2025. This move caused the price of the key intermediate material, Ammonium Paratungstate (APT), to nearly double over the year. As a result, WF6 suppliers had already notified Korean fabs of 70-90% price hikes for 2026, well before the war began. The supply was already tight and expensive.
Second, the Iran war and the closure of the Strait of Hormuz added a severe logistics shock on top of this fragile situation. The media has focused on the resulting helium shortage, but the disruption to shipping, insurance, and container availability affects the entire specialty gas supply chain. This logistical nightmare magnified the pre-existing tightness in tungsten, pushing suppliers to issue formal warnings about potential shortages.
In essence, the war didn't create the WF6 problem, but it dramatically increased the probability that the already strained and expensive supply chain would break. The market understood this dynamic instantly, with shares of Korean alternative supplier Foosung jumping over 18%, as investors anticipated a necessary shift toward domestic sourcing to mitigate the risk.
- WF6 (Tungsten Hexafluoride): A gas used in semiconductor manufacturing to deposit a thin layer of tungsten metal, which acts as wiring inside a chip.
- APT (Ammonium Paratungstate): The primary intermediate raw material derived from tungsten ore, which is then processed to create high-purity tungsten and WF6 gas.
- Strait of Hormuz: A narrow, strategically important waterway between Iran and Oman, through which a significant portion of global trade, including energy and raw materials, passes.