According to a report by Taiwan's Economic Daily News on July 1, industry sources indicate that TSMC, Samsung Electronics, and SK Hynix have recently stepped up procurement of electronic-grade hydrofluoric acid (Electronic Grade HF). Driven by rising raw material costs and tightening supply of high-end products, some suppliers have raised product prices by 20%–30% since the beginning of this year.
Market analysts believe the current price hike results from three converging factors: raw material costs, supply chain security, and advanced process capacity expansion.
Upstream raw material prices surge across the board, steadily lifting costs for electronic-grade hydrofluoric acid
Electronic-grade hydrofluoric acid is one of the most widely used wet chemicals in semiconductor manufacturing, with extremely high purity requirements.
Since the start of this year, ongoing tensions in the Middle East have driven up global prices for sulfur and sulfuric acid—key raw materials for producing anhydrous hydrofluoric acid (AHF). At the same time, fluorspar prices have remained elevated, further increasing AHF production costs.
Because electronic-grade hydrofluoric acid is produced through deep purification of AHF, upstream cost increases have been rapidly transmitted to end products, pushing prices of electronic-grade hydrofluoric acid consistently higher.
As of June 29, the average price of domestic UP-grade electronic-grade hydrofluoric acid stood at approximately 7,885 yuan/ton, while UPS-grade was about 8,750 yuan/ton—up roughly 19% and 17%, respectively, from the beginning of the year. Some suppliers have disclosed that cumulative product price quotations this year have risen by about 20% to 30%.
Semiconductor expansion coupled with stockpiling tightens high-end supply
As advanced process nodes and high-bandwidth memory (HBM) continue to expand capacity, wafer fabs are seeing significantly increased demand for ultra-high-purity electronic chemicals. Electronic-grade hydrofluoric acid is used across multiple critical processes, including wafer cleaning and etching, and its procurement volume grows in tandem with wafer capacity.
Industry sources report that TSMC, Samsung Electronics, and SK Hynix have all been actively procuring electronic-grade hydrofluoric acid to secure future production needs.
The real supply tightness is concentrated in G5-grade electronic-grade hydrofluoric acid used for advanced semiconductor manufacturing. Compared with standard electronic-grade products, G5-grade imposes far stricter requirements on metal ions, particulates, and impurity content. Its production process is complex, certification cycles are long, and the number of manufacturers capable of stable mass production is limited.
Currently, the global high-end G5-grade electronic-grade hydrofluoric acid market remains dominated by Japanese companies, including Stella Chemifa and Morita Chemical Industries. In recent years, both companies have been cautious about capacity expansion, resulting in limited new high-end supply.
Meanwhile, about 90% of the anhydrous hydrofluoric acid used by South Korean semiconductor materials companies is imported from China. Against the backdrop of tightening supply, some Korean firms have recently increased their procurement volumes from Chinese suppliers and have accepted higher purchase prices.
Chinese manufacturers accelerate integration into international wafer fabs
Do-Fluoride New Materials recently stated in institutional investor briefings that its G5-grade semiconductor-grade hydrofluoric acid has achieved stable volume supply to leading global and domestic wafer fabs, including TSMC, Samsung Electronics, Hua Hong Semiconductor, and CXMT. The company noted that overall market prices have risen by about 20%–30%.
As the purity and stability of products from Chinese companies continue to improve, the market share of domestically produced electronic-grade hydrofluoric acid in advanced semiconductor applications is gradually increasing, thereby enhancing diversification capabilities across the global supply chain.
Fluorochemical sector rallies
Driven by market news, A-share fluorochemical stocks rallied collectively on July 1.
Do-Fluoride New Materials hit the 10% daily upper limit just two minutes after market open, marking its third consecutive daily limit-up, closing at 55.25 yuan/share, with a total market capitalization of 65.771 billion yuan. Yongtai Technology, Sanmei Chemicals, and several other fluorochemical stocks also hit their daily limits.
Of note, the current price increase in electronic-grade hydrofluoric acid is mainly concentrated in high-purity grades. The market for ordinary industrial-grade hydrofluoric acid remains constrained by traditional downstream demand and has shown relatively stable price performance. Whether high-end electronic-grade products can sustain their upward trend in the future will still depend on global wafer fab expansion schedules, upstream AHF supply, and the release of new production capacity.
