[News] Japan’s Kanto Denka Fire Threatens NF₃ Supply, Alerts Chipmakers Like TSMC, Samsung and Rapidus

A fire at Japanese industrial gas maker Kanto Denka Kogyo’s nitrogen trifluoride operations is raising alarms over semiconductor supply chain disruptions, as the company supplies major clients including TSMC, Samsung, Micron, and Japan’s Kioxia, Sony, and Rapidus—highlighting the potentially wide-reaching impact, Bloomberg and Nikkan Kogyo Shimbum report.

According to Nikkan Kogyo Shimbum, companies are scrambling to secure alternative supplies of nitrogen trifluoride (NF₃) from Kanto Denka, a gas used for semiconductor equipment cleaning and etching processes. Meanwhile, Japan’s Ministry of Economy, Trade and Industry is reportedly stepping in, planning to offset the shortfall by expanding imports from South Korea.

Bloomberg notes that on August 7, a fire broke out at Kanto Denka’s nitrogen trifluoride plant in Shibukawa, Gunma Prefecture, resulting in one worker’s death. Authorities have suspended operations after the incident damaged one of the plant’s two production lines, the report adds.

As Nikkan points out, restoring Kanto Denka’s damaged facilities and resuming shipments could take months, fueling supply concerns for tungsten hexafluoride (WF₆), which is made from NF₃ and is vital for forming metal wiring in chips.

As per Bloomberg, Kanto Denka produces 90% of Japan’s nitrogen trifluoride. With Mitsui Chemicals set to exit production by March 2026 due to rising costs and tough price competition, Kanto Denka will soon be the country’s sole major supplier.

Impact on Major Clients

The incident attracts wide attention, as the company’s clients encompass global chipmaking giants. According to Nikkan, TSMC’s Kumamoto plant (Kikuyo, Kumamoto Prefecture), which began operations in 2024, sources NF₃ from multiple suppliers, including Kanto Denka.

On the other hand, Nikkan reports that Kioxia and Sony already source NF₃ from South Korea as well as Kanto Denka. Bloomberg notes Kioxia expects no impact on production or July–September earnings, citing multiple suppliers and inventory, while Sony’s chip unit declined to comment.

Notably, Nikkan highlights concerns on Japan’s Rapidus, as it appears to rely solely on Kanto Denka. The company is rushing to secure alternative supplies to ensure that future prototyping and mass production are not affected, the report suggests.

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(Photo credit: TSMC)