Neon Gas Supply Chain Resilience: From Lasers to EUV Lithography

Neon, a noble gas extracted as a byproduct of large-scale air separation in steel-producing regions, became a headline risk to the global semiConductor industry in 2022. Over 90% of the world'ssemiconductor-grade neon supply was refined in a handful of facilities in Ukraine. The conflict there triggered a severe shortage and price spike, as neon is the essential gain medium for the excimer lasers used in Deep Ultraviolet (DUV) lithography, the workhorse for chip manufacturing.

The industry response has been multifaceted, aiming to build long-term resilience. Supply diversification is a top priority. This involves qualifying neon sources from air separation units (ASUs) in other regions, such as Asia, North America, and the Middle East. While all ASUs produce crude neon-helium mix, the economic incentive to invest in the complex, cryogenic purification trains was previously low. Now, new purification facilities are being commissioned globally.

Recycling and recovery within fabs have gained massive traction. Systems are being installed to capture and purify the neon-helium exhaust gas from lithography laser chambers. Advanced recovery units can purify this gas back to specification, allowing 70-90% of the neon to be reused on-site, dramatically reducing external demand and insulating the fab from market shocks.

Looking forward, the next generation of Extreme Ultraviolet (EUV) lithography also uses lasers to create plasma, though the gas dynamics differ. Ensuring a stable, high-purity supply of all related gases (including neon for pre-pulse lasers in some systems) remains critical. For gas suppliers, the value proposition has shifted. Beyond being a reliable source, leaders now offer integrated solutions combining primary supply with on-site recovery technology leases, long-term purification service agreements, and strategic inventory management to provide fabs with both physical and financial supply assurance.