Electronic-grade hydrofluoric acid prices in China rise about 17%-19% on AI chip demand

TSMC, Samsung and SK Hynix are buying more of the wafer-cleaning and etching chemical as higher upstream costs and demand for AI GPUs and HBM tighten the market.

Summary

Electronic-grade hydrofluoric acid, a key wafer cleaning and etching material sometimes described as a "chemical key," has become a strategic input in the AI computing buildout. TSMC, Samsung and SK Hynix are increasing purchases of the chemical, while domestic prices in China have risen about 17%-19% this year. The increase is being driven from both sides of the market: on the cost side, geopolitical tensions in the Middle East have lifted prices for sulfur, sulfuric acid and anhydrous hydrogen fluoride; on the demand side, rising production tied to AI GPUs and HBM (high-bandwidth memory) is supporting stronger consumption.

Terms & Concepts
  • electronic-grade hydrofluoric acid: High-purity hydrofluoric acid used in chipmaking
  • HBM: High-bandwidth memory used with AI chips
  • wafer cleaning and etching: Chip fabrication steps that remove and pattern material