Japan's Nitrogen Trifluoride Supply Faces Major Disruption

A fire at Kanto Denka Kogyo Co. — Japan’s largest nitrogen trifluoride (NF₃) producer — has triggered global concerns over semiconductor supply chain stability. The incident occurred in Shibukawa City, Gunma Prefecture, northwest of Tokyo, at the company’s NF₃ manufacturing plant.

NF₃ is a critical semiconductor process gas, widely used for etching, thin-film deposition, and cleaning semiconductor manufacturing chambers. Kanto Denka holds over 90% market share in Japan, supplying major semiconductor manufacturers worldwide.

Details of the Kanto Denka Kogyo Fire Incident

*  Date: Last week (August 2025)

*  Casualties: 1 worker killed, 1 injured

*  Damage: Partial damage to one of two NF₃ production lines

*  Status: Operations suspended by local authorities

This production halt comes at a time when demand for NF₃ is soaring due to AI chip manufacturing and advanced semiconductor process expansion.

Impact on Semiconductor Manufacturing

Kanto Denka is a key supplier to Samsung Electronics, Kioxia Holdings, Sony Semiconductor Solutions, and Micron Technology.

*  Kioxia stated that existing NF₃ inventory and alternative suppliers will prevent short-term production impact.

*  Sony Semiconductor declined to confirm supply details.

*  Analysts warn: A prolonged shutdown could tighten production capacity for AI and advanced chips, increasing lead times and material costs.

NF₃ Market Vulnerabilities

Japan's nitrogen trifluoride market is highly concentrated:

*  Kanto Denka Kogyo: 90% domestic production share

*  Mitsui Chemicals: Announced NF₃ production exit by March 2026 due to low profitability

*  Limited backup capacity within Japan

Over the last decade, overseas NF₃ manufacturers — especially in South Korea, China, and the US — have expanded production, but Japan still depends heavily on domestic sources.

Potential Global Impact on the NF₃ Supply Chain

Short-term outlook:

*  Minimal disruption expected for Q3 2025 due to stockpiles and alternative suppliers.

Mid-to-long term risks:

*  AI chip production and advanced semiconductor manufacturing could face material shortages.

*  Overseas NF₃ suppliers may capture additional market share.

*  Semiconductor companies likely to diversify sourcing to reduce single-point-of-failure risk.

Why Nitrogen Trifluoride Matters

*  Used in: Etching, plasma cleaning, thin-film deposition in semiconductor fabs

*  Essential for: DRAM, NAND flash, AI chip manufacturing

*  High purity requirement: Limits the number of qualified suppliers

*  NF₃ price trends: Sensitive to supply disruptions and raw material costs

Industry Takeaway

The Kanto Denka Kogyo NF₃ plant fire highlights the fragility of the semiconductor materials supply chain. Just as the 2020 Asahi Kasei fire disrupted multiple industries, this incident underlines the urgent need for:

*  Supply diversification

*  Strategic NF₃ stockpiling

*  Government support for domestic production stability