The shortage of semiconductors could worsen further

Intel is rallying against a planned decision by the US International Trade Commission (USITC) to ban imports of a compound crucial to semiconductor manufacturing. The latter, known as "chemical mechanical planatization slurry," is sold under the Optiplane name and is manufactured by DuPont's Rohm & Haas units in Taiwan and Japan. According to Bloomberg, DuPont was recently accused of infringing on patents held by CMC Materials Inc. Should the ban materialize, Intel says the already critical semiconductor shortage will only worsen.

CMC Materials' lawsuit is at the center of USITC's investigation into whether or not to ban US imports of the compound. The commission should have communicated a decision a few days ago, but a last-minute announcement postponed it to December 16. These compounds are indispensable in semiconductor manufacturing, as they are used to polish the wafer surface in various stages and, according to Intel, "even small variations between them have outsized impacts in a manufacturing environment."

Given the extremely delicate nature of the semiconductor manufacturing process, any changes, even just inherent to the supplier of these compounds, can have a disproportionate impact on yields. It also seems plausible that Intel will have to invest a substantial amount of resources to integrate a new solution into its production lines. The company went even further in its appeal to the committee: The company said that “banning Optiplane compounds from US-based semiconductor chip manufacturing lines without a 24-month transition period could conflict with security. national and economic interests ". Additionally, Intel appears to be concerned about the possibility of a "supply shock" if Optiplane imports are banned.

Intel would be one of the companies hardest hit by the ban, leaving the Chinese semiconductor industry in strong expansion and the competing giant of the TSMC industry with a clear advantage. It is also unclear whether Intel can source the compounds from other suppliers, such as CMC Materials, to the required scale. USITC staff attorneys have shown support for Intel's request for a 24-month postponement in any import ban, which would aid in the transition of manufacturing and suppliers. Thomas Chen, a USITC attorney, said a 24-month delay "would provide Intel with sufficient time to switch to acceptable alternatives that do not violate the violations, particularly if the commission detects a shortage of semiconductor chips." >
Obviously a semiconductor shortage is ongoing, as we know all too well. Intel will likely need to demonstrate the exact impact this ban would have on its operations. For its part, CMC stated: “The reported 'semiconductor shortage' is the result of a complex set of economic factors and has nothing to do with the supply of CMP compounds, let alone the supply of the specific illicit products in issue in this investigation ".