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Neon gas used in chip production begins to drop in price

The price of neon gas used in wafer manufacturing or semiconductor production has begun to fall, but is still three times the price before the Russia-Ukraine conflict.

Image source Pexels

The precious gas used in excimer laser gases used in lithography saw a 20-fold price hike at one point last year. This was due to the impact of the Russia-Ukraine conflict on supply chains, with customers starting to buy in bulk to build up inventories. The price of neon gas for South Korean chipmakers once reached 30 million won (about 162,000 yuan) per 47 liters.

The current price is 5 million won (about 27,050 yuan) per 47 liters. The drop in prices may be due to the increasing use of gas from China and local suppliers by South Korean chipmakers.

Factories at Samsung and SK Hynix have reduced operating rates due to lower demand for chips, which means lower demand for gas.

Chipmakers expect neon prices to return to what they were before the Russia-Ukraine conflict, industry sources said.

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