Memory makers brace for hydrogen fluoride pricing shock as Hormuz blockade impacts supply chain
Samsung and SK hynix warn AI-driven memory shortages could last until 2027 and beyond, as HBM demand explodes
Fluorine gas is used in various industrial processes, but it is a highly reactive gas that can cause spontaneous combustion or explosions if it comes into contact with common materials. It is also quite deadly to humans. Wikipedia states that “significant irritation of the eyes and respiratory system as well as liver and kidney damage occur above 25 ppm… The eyes and nose are seriously damaged at 100 ppm… and inhalation of 1,000 ppm fluorine will cause death in minutes.”
With the immense demand and pressure on memory-making titans like SK hynix, some may be concerned that a facility like Cheongju closing even for a few hours could impact supplies, schedules, pricing, and more. However, an official insisted, “There are no issues with equipment operation, so there will be no production disruption.” It was also suggested that the fire/leak occurred in the gas pipeline, but that fact had yet to be determined.
At the time of writing, there may still be environmental purification and repair work to do. If and when that’s completed, operatives will begin safety inspections, including air quality measurements. After the all-clear, “we plan to return the employees,” the official told Yonhap. We’ve linked to the latest report on this incident available at the source.
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Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/semiconductors/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/semiconductors/seven-hospitalized-after-toxic-gas-fire-at-sk-hynix-advanced-memory-plant-cheongju-4th-campus-incident-today-led-to-all-3-600-staff-being-evacuated#main
- https://www.tomshardware.com
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Informational only. No financial advice. Do your own research.