Samsung, SK Hynix Face Chip Supply Risk from Naphtha Shortage After Hormuz Strait Disruption

Gate News message, April 24 — Japanese photoresist suppliers have warned Samsung Electronics and SK Hynix of potential raw material disruptions following the effective closure of the Strait of Hormuz in early March. The risk stems from tighter naphtha supply, an oil-based feedstock used to produce specialty chemicals for photoresist, a critical material in chipmaking.

Spot prices for Japanese naphtha surged nearly 92% to $1,190 per ton after the Strait closure, forcing six of Japan's 12 naphtha cracking centers to cut output. The supply strain is most acute for solvents such as propylene glycol methyl ether (PGME) and propylene glycol methyl ether acetate (PGMEA). Japan controls over 70% of the global photoresist market, amplifying the impact across the semiconductor industry. Advanced chips produced using extreme ultraviolet (EUV) lithography face the tightest constraints due to stricter material tolerances in the process.

The bottleneck exposes vulnerabilities in Japan's industrial supply chain. Chemical suppliers typically depend on domestic feedstock sources, limiting rapid alternatives. Chipmakers must undergo year-long requalification processes for any raw material substitution, leaving minimal room for short-term solutions, particularly for cutting-edge production lines.