CO2 shortage threatens advanced semiconductor supply as South Korean refineries cut output amid Middle East crude uncertainty.

The advanced semiconductor manufacturing industry is facing a critical shortage of high-purity CO2, a compound essential to chip production.

Last month, manufacturers grappled with a shortage of Tungsten Hexafluoride (WF6), a critical gas for advanced packaging processes required by HBM and 3D NAND technologies. That shortage stemmed from China cutting off tungsten supplies to Japanese gas producers. Now a second chemical compound is facing potential scarcity.

CO2 shortages were first reported on June 2nd. According to The Elec, production of raw CO2 has declined significantly at major oil refineries and petrochemical plants. CO2 is critical for advanced semiconductor manufacturing, where it serves dual roles in cleaning processes: as a liquid for dissolving wafer residues and contaminants, and as a gas for removing particles embedded deep within the semiconductor structure. Raw CO2 is produced as a by-product at oil refineries, petrochemical facilities, and hydrogen manufacturing plants.

The shortage stems from lower operating rates at South Korean petro-chemical plants, compounded by uncertainty in crude oil supply due to the ongoing Middle East crisis. "We cannot supply as much as customers want because there simply isn't enough feedstock," a gas supplier official stated. "There is no practical way to increase production in the short term."

Major manufacturers Samsung and SK Hynix typically maintain at least two weeks of inventory, but current shortages have eroded combined reserves below the one-month mark. Samsung consumes 1,800–2,000 metric tons of high-purity CO2 per month, while SK Hynix uses 600–700 metric tons monthly. Both companies continue manufacturing at steady rates for now, but prolonged CO2 shortages could trigger supply cutoffs for advanced packaging chips. Given current demand for AI compute, further scarcity risks significant price increases, which would ripple across the global technology sector.