SK Materials and Hyosung Chemical’s NF3 gas is enjoying an unprecedented boost in sales as demand for semiconductors and displays have spiked amid the pandemic.

NF3, short for nitrogen trifluoride, is a special type of gas used during the manufacturing process of semiconductor, display and solar panels. The gas removes residue left on inner walls of the manufacturing chamber.

“Thanks to the recovery of global chip and display industries, NF3 is currently selling like hotcakes,” Kiwoom Securities analyst Lee Dong-wook said.

According to SK Materials, the world’s No.1 NF3 producer with an annual production capacity of 12,000 metric tons, is barely keeping up with the demand.

“SK Materials is running NF3 production facilities at full capacity as demand for automotive displays and LCD has surged during the pandemic. Also, the semiconductor industry is set to enter a ‘super cycle’ this year,” a company official said.

Meanwhile, Hyosung Chemical, the world’s second largest NF3 producer with a capacity of 4,550 tons, exported about 4,000 tons of NF3 last year, compared to less than 3,000 tons in 2019, according to Korea International Trade Association data. 

The size of the NF3 market is forecast to surpass $2 billion by 2025 from $967.4 million as of 2018, according to Global Market Insights. 

By Kim Byung-wook (kbw@heraldcorp.com)