Local time Aug 12, Kanto Denka Kogyo announced an explosion and major fire at its nitrogen trifluoride (NF₃) plant in Shibukawa, Gunma Prefecture, on Aug 7. The incident killed 1, injured 1, with flames extinguished that morning.
The blast damaged and halted part of its NF₃ Line 1; other lines await safety checks for resumption. Bloomberg noted one production line was suspended.
Kanto Denka holds 90% of Japan’s NF₃ market, supplying Samsung and Kioxia. Coupled with Mitsui Chemicals’ 2026 production shutdown plan (announced in May), supply chain disruption fears have risen. Kioxia says output isn’t affected, but analysts warn prolonged closure could worsen capacity strains amid surging AI demand.
NF₃ is critical for semiconductor manufacturing (etching/cleaning), used in ~50% of global semiconductor production.
Global market leaders: South Korea’s SK Materials (35% share, ~13,500 tons/year) and Hyosung (25%, ~11,500 tons/year, planning 2,000-ton expansion); Kanto Denka (8%, ~3,700 tons/year).
Chinese firms are rising: CSSC Special Gases (11,000 tons/year in 2024, 18,500-ton plan), Nangong Photoelectric (8,300 tons/year, 15,000+-ton plan), and others expanding.
However, advanced processes demand higher purity. Most domestic products are 4N grade; only CSSC and Kaimeite Gas offer 5N grade. Nangong’s 5N capacity is set for Q4 2025.
The Kanto Denka incident plus Mitsui’s exit may create a global gap in high-purity NF₃, opening opportunities for Chinese electronic specialty gas makers.
ICgoodFind: Japan’s factory accident hits NF₃ supply; Chinese firms could fill gaps, easing chain pressures.
