A fatal fire at a Kanto Denka Kogyo Co. facility is raising alarms throughout the global semiconductor sector, as industry insiders weigh the potential ramifications for chipmakers’ crucial supply chains.
The blaze erupted last week at the firm’s nitrogen trifluoride plant in Shibukawa, Gunma prefecture—an essential supplies hub for giants like Samsung Electronics and Kioxia Holdings.
One employee lost their life and another was injured in the incident, according to the company. Local authorities have since halted operations on the affected line, which sustained notable damage. The rest of the factory’s activities have also been suspended.
Nitrogen trifluoride plays a key role in the semiconductor manufacturing process, especially in cleaning processing chambers. Kanto Denka holds a dominant position in the domestic market, estimated to be responsible for 90% of Japan’s output. That prominence has analysts watching the duration of the suspension closely.
Kioxia moved swiftly to assure investors that immediate output or financial performance for this quarter were not at risk, citing emergency inventories and alternative sources. Sony declined to comment on its procurement policy, while analysts note that customers also include memory chip leaders such as Micron Technology.
Kazuyoshi Saito, senior analyst at Iwai Cosmo Securities, warned that if operations are unable to resume soon, downstream chipmakers could face intensified supply bottlenecks. Many are already running at peak capacity to keep up with surging demand for artificial intelligence applications.
On a related note, rivals such as Mitsui Chemicals are exiting the market amid fierce competition and rising input costs, intensifying the focus on Kanto Denka’s recovery timeline.
