Chip Talk > Japan's Industrial Fire Highlights Vulnerabilities in Global Semiconductor Supply Chains
Published August 14, 2025
On August 7, 2025, a devastating fire at Kanto Denka Kogyo in Shibukawa, Gunma, caused a significant disruption in the semiconductor supplies chain. As reported by Bloomberg, the blaze resulted in a tragic loss of life and the suspension of operations at one of Japan's primary producers of nitrogen trifluoride (NF₃), a crucial gas used in semiconductor manufacturing.
Nitrogen trifluoride is indispensable in cleaning and etching processes. It ensures the high precision required for advanced semiconductor fabrication. With Kanto Denka producing 90% of Japan’s NF₃, the fire not only threatens semiconductor production but also highlights the fragility of global logistics in essential tech materials.
The fire's immediate repercussions were felt across major clients like TSMC, Samsung, Micron, Kioxia, Sony, and Rapidus, exposing the dependency of the global supply chains on singular entities. Japan's Ministry of Economy, Trade and Industry has taken steps to mitigate shortages by exploring increased imports from South Korea.
As the semiconductor industry watches the unfolding crisis, this incident underscores the need for diversification in material sourcing. While Nikkan Kogyo Shimbum points out that companies like Kioxia and Sony have proactive measures established with alternative suppliers, others like Rapidus demonstrate critical dependencies.
Looking forward, a key lesson from the Kanto Denka incident is the necessity for a proactive approach to supply chain management. It's a wake-up call for the industry to bolster manufacturing resilience, highlighting the importance of strategic partnerships and diversified supply lines to prevent such vulnerabilities from disrupting global technology ecosystems.
This event compels the semiconductor industry to reconsider logistics strategies, enhancing collaborative international policies and reinforcing contingency plans, ensuring that operations can continue seamlessly even when local disruptions occur.
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