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Procurement

Japan aims to ensure chip-use rare gases procurement amid Ukraine war

Japan’s industry ministry said Thursday it aims to ensure the procurement of rare gases necessary for chip production, as supply from major exporter Ukraine may be disrupted by Russian’s invasion and the chip supply crunch remains a major issue.

Officials of the Ministry of Economy, Trade and Industry said at a panel meeting that it seeks to take measures to encourage domestic manufacturers to ramp up production capacity of those gases and bolster cooperation with other countries to enhance supply chains by 2025.

A panel holds a meeting on Japan’s semiconductor industry in Tokyo on April 14, 2022. (Photo courtesy of Economy, Trade and Industry Ministry)(Kyodo)

Japan has examined potential supply disruptions of neon, krypton and xenon from Ukraine and the surrounding areas after Russia’s invasion, as it seeks to increase chip production at home following the global supply shortage in recent years. These gases are used in lasers for etching patterns.

Resource-scarce Japan relies on about 6 percent of total imports of the rare gases from Ukraine and the surrounding areas, which provided about 60 percent of global supplies in 2015, according to the ministry.

Since semiconductors are used in many fields and are often regarded as the brain of industries, it is considered crucial to establish a stable supply system from a security standpoint.

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