ASML looking to diversify its sourcing for neon gas

ASML seeks to diversify its sourcing for neon gas:- Evertik previously reported on this. Ukraine is a key source of semiconductor raw materials such as neon. If the crisis between Ukraine and Russia worsens, essential gas supplies are likely to be disrupted..

As reported by Trendforce, Ukraine supplies about 70% of the world’s neon gas capacity and while the amount of neon gas used in semiconductor processes is not as prominent as in other industries, it is still an essential resource. .

If the supply is cut due to the ongoing conflict there is a risk that it will have an impact on the industry.

It should be pointed out that the conflict may affect gas supplies regionally, gas suppliers are stocked and supplies from other regions are still available. This means that the gas supply interruption in Ukraine will not stop semiconductor production lines in the short term – but it could lead to higher prices which in turn could increase the cost of wafer production.

Memory specialist Micron has already said publicly that it has diversified its sourcing for its noble gases.

“Micron has diversified sourcing for all of our noble gases, and our supply of neon comes primarily from various suppliers in the European Union, the United States, and Asia. In addition we are excellent at supporting our business. Maintaining suitable inventory of gases, the company said in a statement, has entered into several long-term supply agreements with major suppliers and is working closely with them to ensure uninterrupted supply.

Semiconductor equipment manufacturer ASML is another firm that is attempting to diversify its neon supply. Despite the fact that Ukraine is the world’s greatest producer of neon, an ASML representative told Reuters that the company only gets about 20% of its gas from the country. Regardless, the business is now exploring for alternative suppliers for Neon amounts, taking advantage of the conflict’s supply interruptions.

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