China’s Tungsten Ban Halts Japanese Chip Gas Makers, June 17

China quietly banned tungsten powder exports to Japan on January 6, 2026, severing the supply chain for two Japanese chemical giants. Kanto Denka Kogyo and Central Glass announced permanent production halts of tungsten hexafluoride (WF6) effective July 1, 2026. These two companies control nearly one-fourth of global high-end WF6 capacity. The ban exposes how dependent the world’s chip makers have become on Chinese raw materials.

How the Ban Unfolded

China’s Ministry of Commerce issued Announcement No. 1 on January 6, 2026, with no press conference or explanation. The ban on tungsten powder exports took effect immediately. Japanese companies did not notice at first because they held warehouse inventory. By February, customs data showed zero tungsten powder exports to Japan. The freeze continued through March and April 2026. Kanto Denka’s inventory fell below safe levels. Central Glass scrambled to find alternative suppliers.

Why Tungsten Hexafluoride Matters

Tungsten hexafluoride is the only precursor material for tungsten deposition in advanced chips. It is essential for 3D NAND memory, high-bandwidth memory (HBM), and logic chips at 7 nanometers and below. These chips power AI systems and data centers. Samsung, SK Hynix, and TSMC rely on WF6 from the two Japanese firms. The ban severs Japan’s supply, crippling advanced chip manufacturing globally.

Prices Surge as Supply Tightens

Tungsten hexafluoride prices have doubled in six months. Quotes for 7N-grade product now exceed 3.6 million Chinese yuan per ton. Alternative suppliers charge three times the price of Chinese material. Non-Chinese tungsten powder falls far short of the 6N purity grade required for chip production. Mitsubishi Materials invested 10 billion yen to boost tungsten scrap recycling, but recycled material cannot meet demand. The supply shock is driving prices higher as chip makers compete for limited inventory.

What This Means for Chip Makers

The permanent shutdown of WF6 production will force Samsung, SK Hynix, and TSMC to find new suppliers or reduce advanced chip output. The shortage will spike DRAM and NAND memory prices. Consumer electronics costs will rise. Chip makers face a multi-year delay to develop molybdenum-based alternatives. The crisis mirrors China’s 2023 restrictions on gallium and germanium exports, signaling a pattern of weaponizing critical materials.

Final Thoughts

China’s tungsten ban cuts off Japan’s WF6 makers, forcing permanent production halts and spiking chip material prices. Samsung, SK Hynix, and TSMC face supply constraints that will ripple through memory and logic chip markets.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.