Memory makers brace for hydrogen fluoride pricing shock as Hormuz blockade impacts supply chain — key etching and cleaning material faces sharp cost increase amid trade disruption
Memory manufacturers are anticipating a significant price increase for anhydrous hydrogen fluoride, a critical material used in chip production. Disruptions in global supply chains, stemming from the conflict in Iran and subsequent closure of the Strait of Hormuz, have reduced the availability and increased the cost of raw materials like sulfur. China's export restrictions on hydrogen fluoride and sulfuric acid are further exacerbating the situation, with South Korean chemical suppliers expected to pass these higher costs onto chip firms like Samsung and SK Hynix by July. AI
IMPACT Disruptions in critical chemical supply chains could lead to increased costs for memory and storage, potentially impacting the price of AI hardware.