Not Cool
Semiconductor manufacturing is complex to say the least and the number of materials used in those processes numbers in the hundreds, with some very toxic or expensive. As we have noted previously there have been some recent supply interruptions that have the potential to leave their mark on an already beleaguered semiconductor sector, such as the neon shortage created when the Russian invasion of Ukraine took place. Unfortunately another shortage is likely to occur, but this time not caused by war but by the government of Belgium.
On March 18 3M (MMM) sent a letter to its customers concerning the indefinite closing of its coolant (Omega 906X) plant in Zwijndrecht, Belgium as new regulations concerning the manufacturing and use of perfluoroalkyl and polyfluoroalkyl substances (aka PFAS) are being tightened across Europe and the US. The 3M plant in Belgium is one of 5 that the company has globally but is said to be responsible for ~80% of the production of the material specifically used in semiconductor processing
PFAS are used to pull heat away from certain steps during wafer etching and are quite effective at doing so however the molecules of such substances are so tightly bound that they do not break down in the environment and leach into the soil, air, and water, with a Center for Disease Control study finding such chemicals present in the blood of 97% of Americans. Research on the effects of same are continuing across the globe, as the materials are used in many other industries, and 3M has filed an appeal with local regulators and a $145m discharge and remediation plan (3 years), but as of now, the plant is closed indefinitely, as concern over the material’s effect on body hormones has become a significant focus..
3M’s major semiconductor customers for the coolant are Samsung Electronics (005930.KS), SK Hynix (000660.CH), Taiwan Semi (TSM) and Intel (INTC) who are said to have inventory ranging from 1 to 3 months, so unless the situation can be resolved in that timeframe, the semiconductor industry could be facing another catastrophe that could tighten an already tight silicon market.
On March 18 3M (MMM) sent a letter to its customers concerning the indefinite closing of its coolant (Omega 906X) plant in Zwijndrecht, Belgium as new regulations concerning the manufacturing and use of perfluoroalkyl and polyfluoroalkyl substances (aka PFAS) are being tightened across Europe and the US. The 3M plant in Belgium is one of 5 that the company has globally but is said to be responsible for ~80% of the production of the material specifically used in semiconductor processing
PFAS are used to pull heat away from certain steps during wafer etching and are quite effective at doing so however the molecules of such substances are so tightly bound that they do not break down in the environment and leach into the soil, air, and water, with a Center for Disease Control study finding such chemicals present in the blood of 97% of Americans. Research on the effects of same are continuing across the globe, as the materials are used in many other industries, and 3M has filed an appeal with local regulators and a $145m discharge and remediation plan (3 years), but as of now, the plant is closed indefinitely, as concern over the material’s effect on body hormones has become a significant focus..
3M’s major semiconductor customers for the coolant are Samsung Electronics (005930.KS), SK Hynix (000660.CH), Taiwan Semi (TSM) and Intel (INTC) who are said to have inventory ranging from 1 to 3 months, so unless the situation can be resolved in that timeframe, the semiconductor industry could be facing another catastrophe that could tighten an already tight silicon market.
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