The spillover effects of the US-Iran conflict continue to expand, delivering a fresh blow to the global semiconductor supply chain. According to South Korean media reports, Japanese suppliers have notified multiple chipmakers of critical photoresist solvent raw material supply disruptions, impacting memory giants Samsung Electronics and SK Hynix, with market fears that the impact will spread further.
Supply-chain impact
The core raw materials affected are PGME and PGMEA solvents, which play a critical role in semiconductor manufacturing. These are widely used in photoresists, anti-reflective coatings, and temporary adhesives for high-bandwidth memory (HBM) processes.
Japanese companies potentially affected include Shin-Etsu Chemical, Tokyo Ohka Kogyo, JSR Corporation, and Fujifilm, all of which supply materials to Samsung Electronics and SK Hynix.
Root cause: Naphtha supply chain fracture
The supply disruption stems from escalating Middle East tensions, which have fractured energy and chemical raw material supply chains. Japan relies on imports for about 40% of its naphtha, primarily from the Middle East. With the Strait of Hormuz blocked, naphtha supply has been cut off, and prices have nearly doubled from about $600 per ton before the blockade to $1,190 per ton in early April.
Naphtha, a light product from oil refining, is cracked to produce ethylene, propylene, and other basic chemicals. As supply dwindles, Japanese crackers have been forced to reduce output, with 6 out of 12 facilities cutting capacity, further squeezing propylene supply. Since propylene oxide is made from propylene, and PGME and PGMEA are derived from propylene oxide, the supply chain fracture creates a chain reaction.
Price surge and buyer notifications
Price pressure is rapidly transmitting downstream. PGMEA prices have already risen by about 40% to 50%. Companies including DuPont (DD-US), Dow (DOW-US), and LG Chem have issued price hike notices, indicating escalating cost pressure across the supply chain.
What buyers should watch
To mitigate supply risks, Japanese suppliers are evaluating alternative raw material sourcing from China or South Korea. However, any switch requires a rigorous Process Change Notification (PCN) certification process. For chipmakers, re-validating materials and processes typically takes about one year, making rapid supplier switching difficult in the short term.
The photoresist material validation process is complex, involving four stages: PRS performance testing, STR small-scale trial, MSTR batch validation, and final Release. Photoresists are formulated chemicals where the resin ratio and quality directly affect resolution and etch resistance, further complicating substitution.
China sourcing context
Despite supply chain pressure, Chinese companies are accelerating breakthroughs in related material technologies. Shengguan Group has achieved mass production of phenolic resins for G-line and I-line photoresists, and its PHS resin for KrF photoresists is entering market introduction. Basifu has achieved ton-level shipments and built a hundred-ton production line. TSRC has also commercialized some self-developed photoresist materials.
Overall, the energy and chemical supply chain turmoil triggered by the US-Iran conflict is creating a new wave of impact on the semiconductor industry, pressuring multiple layers from upstream raw materials to chip manufacturing, and is unlikely to be fully resolved in the short term.
Source: Read the original report | Published: April 23, 2026