The Iran conflict has disrupted Japan’s photoresist solvent supply chain, triggering shortages of PGME and PGMEA due to a naphtha import cutoff after the Strait of Hormuz blockade. Japanese naphtha spot prices surged ~92% to $1,190/ton in early April. Six of Japan’s 12 naphtha crackers cut output, affecting propylene oxide and downstream solvents. Major suppliers—including Shin-Etsu Chemical, JSR, and Fujifilm—are notifying Samsung Electronics and SK hynix of disruptions. Requalification delays (≈1 year) complicate switching to Korean or Chinese alternatives, though Chemtronics, Jaewon Industrial, and HanWool are scaling supply efforts.
According to www.thelec.net, the Iran conflict has triggered a critical shortage of photoresist solvents in Japan — specifically propylene glycol methyl ether (PGME) and propylene glycol methyl ether acetate (PGMEA) — disrupting supply to major South Korean semiconductor manufacturers including Samsung Electronics and SK hynix.
Root Cause: Strait of Hormuz Blockade & Naphtha Shortfall
The shortage stems from disruptions in naphtha supply linked to the Iran conflict. With the Strait of Hormuz effectively blocked in early March, imports of Middle Eastern naphtha — which accounts for more than 40% of Japan’s naphtha imports — were cut off. Naphtha is a key feedstock for producing petrochemical intermediates such as propylene and ethylene. As a result, six of Japan’s 12 naphtha cracking centers have reduced output.
This cascade disrupted propylene oxide production, which is required to synthesize PGME and PGMEA. Spot prices for Japanese naphtha surged from around $600 per ton before the disruption to $1,190 in early April — an increase of about 92%.
Impact Across the Photolithography Supply Chain
PGME and PGMEA are essential solvents used in multiple semiconductor photolithography materials, including:
- Photoresist
- Thinner
- Bottom anti-reflective coatings (BARC)
- Spin-on hardmask (SOH)
- Temporary bonding adhesives for high-bandwidth memory
One industry official likened the situation to “having coffee mix but no water to pour.”
Key Japanese Suppliers Affected
Japanese companies supplying these materials to Samsung Electronics and SK hynix include:
- Shin-Etsu Chemical
- Tokyo Ohka Kogyo
- JSR
- Fujifilm
- Nissan Chemical Corporation
Domestic integration adds vulnerability: Daicel produces propylene oxide through to PGMEA in an integrated process, while Toagosei refines PGMEA using feedstock supplied by Dow. These solvents are then supplied to domestic manufacturers like JSR and Fujifilm to produce finished photoresist for export.
Requalification Bottleneck & Localization Efforts
Japanese photo-material manufacturers are exploring alternative sourcing — particularly from South Korea or China. However, any raw material substitution triggers a mandatory requalification process by customers such as Samsung Electronics and SK hynix. According to the source, this typically takes about a year, and even longer for leading-edge nodes.
Another industry source noted that while some localization has been achieved for thinner and SOH materials, a disruption in Japanese supply of photoresist or BARC could halt semiconductor production lines — prompting potential acceleration of evaluation procedures if procurement issues intensify.
Emerging Opportunities for Korean Suppliers
Korean firms are stepping in: Chemtronics and Jaewon Industrial have already established mass production systems for PGMEA and supply materials directly to Japanese firms and Samsung Electronics. An executive at Jaewon Industrial stated that while Korean companies benefit from more diversified supply chains — including sources in the U.S. and China — procurement conditions remain challenging.
HanWool Materials Science plans to import and supply PGME and PGMEA produced in China through its subsidiary JK Materials, under an agreement with a major Chinese materials supplier. The company is currently in discussions with large Japanese photo-material manufacturers regarding supply of these materials.
Source: www.thelec.net
Compiled from international media by the SCI.AI editorial team.
