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Rising Quartz Prices Impacting Semiconductor Component Industry

Quartz’s supplier is asking for a 20% supply price increase next year
The demand for focus ring repair is increasing due to the quartz price effect

Quartz image. <이미지=게티이미지뱅크>

The price of quartz, a key raw material for semiconductor processing components, will rise again next year. This is due to the growing demand for quartz due to the expansion of China’s semiconductor and solar power industries. Quartz suppliers are demanding a 20% increase in supply prices next year. The industry anticipates that an increase in the price of quartz could lead to an increase in the overall price of parts that use quartz as a raw material.

According to the industry on the 28th, suppliers of industrial quartz informed of a supply price increase of 20% next year. Quartz prices have continued to rise in recent years due to quartz shortages and other reasons. Quartz prices increased by around 15% this year.

Quartz is used in the semiconductor industry to produce parts such as quartz crucibles, quartz wares, focus rings, and blank masks. This is because the chemical properties of silicon (Si), the raw material of semiconductor wafers, and silica (SiO2), which forms quartz, are similar. In Korea, Wonik QnC, DS Techno, S&S Tech, and SGC Energy produce quartz-related parts.

The industry believes that the increase in quartz demand in China has influenced the increase in quartz prices. The analysis is that quartz consumption has increased as China has aggressively expanded not only the semiconductor but also the solar energy industry. An official in the quartzware industry said, “Quartz is used in large quantities not only in the semiconductor industry but also in the solar energy industry,” and added, “Quartz is used to produce quartz crucibles which are necessary for making ingots .”

As raw material prices rise, domestic quartz component companies are also asking for an increase in component prices. An official from the Focus Ring industry said, “Since the price of raw materials has gone up, we have asked for a price increase from our customers, and it seems that it will be accepted to some extent. However, it seems difficult to raise the price component by the amount of the quartz price increase.” He added, “As the price of quartz focus rings has increased, the demand for focus ring repairs from our customers has increased.”

Recently, domestic semiconductor device companies such as Samsung Electronics and SK Hynix are increasing the introduction of refurbished products due to the rising price of quartz focus rings. Focus ring repair is performed by cleaning a used focus ring. If a new product can be used for 300 hours, a refurbished product can be used for 150 to 200 hours.

A mask industry official expressed the view that the quartz shortage is more serious than Chinese demand. He predicted, “Capacity expansion (CAPA) by quartz raw material producers has been delayed due to the coronavirus,” and added, “Quartz price hikes will continue for now.”

The Elec = Reporter Noh Tae-min tmnoh@thelec.kr
《The Elec, specialist media in the fields of semiconductors, displays, batteries, automotive electronics, and ICT parts.

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