Effects The Chip Industry!EU Plans To Legislate To Prohibit The Use Of "Permanent Chemicals"

Introduction: The European Union is planning to initiate legislation to ban tens of thousands of perfluoroalkyl and polyfluoroalkyl compounds (PFAS), known as "permanent chemicals". It is reported that five countries including Germany, the Netherlands, Denmark, Sweden and Norway strongly support this proposal. If the proposal is approved, it will be implemented as early as 2026. PFAS are used in a variety of ways, including electronic equipment, wind turbines, solar panels, cosmetics, medical equipment, industrial equipment and cooking utensils, and are critical to chip manufacturing.

After the news came out, major European chip suppliers warned that if the ban is implemented, it will cause great disruption to the industry.

According to the data, due to its extremely stable chemical structure and unique chemical characteristics, PFAS has been favored by manufacturers for a long time due to its extremely stable chemical structure and unique chemical properties, and has been favored by manufacturers for a long time. This chemical is used in the production of thousands of products. But research in recent decades has found a high link between PFAS and health risks such as cancer, hormonal dysfunction, a weakened immune system, and environmental damage.

Source: Internet

Five European countries, including Germany and the Netherlands, have proposed that the EU phase out "permanent chemicals". If passed, they said in a joint statement that the proposal would be "one of the largest ever bans on chemicals in Europe".

"In the longer term, banning the use of PFAS will reduce the amount of PFAS in the environment, which will also make related products and processes safer for humans," they added.

If the proposed legislation is approved, it could take effect as early as 2026. According to the draft proposal, once the ban takes effect, relevant companies will have a transition period of 18 months to 12 years to introduce PFAS alternatives, depending on the importance of the relevant industries and the availability of alternatives. Some industries, such as medical device components, will be allowed a transition period of up to 12 years, while other general industries will have to adjust within 18 months.

In the list of industries that may be hurt under the "permanent chemicals" ban, the chip industry is undoubtedly on the list. Some local European chip suppliers have warned this week that the EU's ban on "permanent chemicals" would cause widespread disruption to already strained semiconductor supply chains.

Chemours, a major supplier of high-end fluoropolymers, has warned that these "forever chemicals" are "absolutely critical" to semiconductor manufacturing, as well as a wide range of other industries.

Denise Dignam, director of high-performance materials at Chemours, said, "If we don't have these, there will be very serious global chaos. I can't imagine how you will do those (semiconductor) manufacturing processes without these materials."

After all, the aforementioned proposal also projects that the use of "permanent chemicals" in the electronics industry will grow by 10% per year, largely driven by soaring demand for chips. Some of the most critical PFAS have already been in short supply as chipmakers ramp up capacity.

Some semiconductor industry executives said that in the past two years, the price of PFA fluoropolymer, one of the most critical PFAS derivatives used in chip manufacturing, has soared by 70%-80% due to supply shortage caused by strong demand. That price is expected to rise a further 20 percent this year, despite the current downturn in the chip industry.

In fact, parts of the semiconductor industry and its supply chain are trying to place themselves on the longer list of 12-year transition periods, rather than the more urgent 18 months, if the EU does eventually decide to implement a PFAS ban.

Chemours' Dignam warns that "regulators have to consider the entire supply chain when considering a ban, as chips are critical to everything from cars to mobile phones. Trying to regulate a class of chemicals is as daunting as trying to regulate diesel or olive oil."