Japan’s production of nitrogen trifluoride (NF3) – a key chamber-cleaning gas used in the manufacture of semiconductors, flat-panel displays, and solar cells – is entering a phase of contraction amid shifting global supply dynamics, according to Japan-published newsletter The Gas Review.
In May 2025, Mitsui Chemicals announced plans to withdraw from the NF3 business, citing declining profitability and rising operational costs. Production at its subsidiary, Shimonoseki Mitsui Chemicals, will cease at the end of March 2026, with sales to end later that year.
The company highlighted increased energy and logistics costs, container investments, and a tightening labour market among the main pressures affecting the business.
The decision follows Central Glass’s withdrawal from NF3 production in 2018 and leaves Kanto Denka Kogyo as Japan’s sole remaining producer. Kanto Denka Kogyo accounts for roughly 90% of the country’s NF3 output, which has previously been estimated at between 10,000 and 12,000 tonnes per year.
A fire at its plant in August 2025 highlighted how concentrated domestic production has become, prompting concern among semiconductor makers including TSMC and Rapidus, according to market intelligence firm Trendforce.
NF3 is used primarily as a plasma-cleaning gas for etching and deposition processes in semiconductor and LCD manufacturing, where it removes residues from reactor chambers. The gas has become increasingly important with the rise of 3D NAND and advanced logic devices, where cleanliness standards are critical.
South Korea’s SK Inc Materials, which began producing NF3 in 2001, now has a leading global market share of more than 40% and operates facilities in both South Korea and China.
Other large-scale producers include Hyosung Chemical and China’s Peric Specialty Gases. Global demand for NF3 exceeded 30,000 tonnes per year in 2024 and is forecast by the Semiconductor Equipment and Materials International (SEMI) association to grow steadily as advanced chip fabrication expands.
According to The Gas Review and data from SEMI’s 2024 report on materials for the chips market, Japan’s competitiveness has weakened against lower-cost producers in South Korea and China, where electricity and depreciation costs are markedly lower.
Decarbonisation and sustainability pressures are also starting to influence the NF3 value chain. Fabs and gas-users are implementing abatement systems and usage optimisation to reduce fluorinated-gas emissions, and NF3 figures prominently in upstream Scope 3 emissions discussions.
However, there is no clear evidence yet of a large-scale replacement of NF3 by less impactful alternatives.
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AloJapan.com