On August 7, a fire and explosion struck Kanto Denka Kogyo Co.'s nitrogen trifluoride (NF₃) plant in Shibukawa City, Gunma Prefecture, Japan, killing one worker and injuring another. The blaze, which broke out at 4:40 a.m. local time, was fully extinguished by 8:45 a.m., the company said on August 12.

One of the facility's two NF₃ production lines suffered partial damage and remains shut under government orders, while other lines will resume operations only after safety inspections. Kanto Denka holds over 90% of Japan's NF₃ market, supplying major semiconductor and electronics makers including Samsung Electronics and Kioxia Holdings.

NF₃ is a key specialty gas used for plasma etching and chamber cleaning in semiconductor, flat panel, and solar cell manufacturing. Any prolonged outage could tighten global supply, especially after fellow Japanese chemical giant Mitsui Chemicals announced in May that it will exit NF₃ production by March 2026 due to rising costs and intensified price competition.

Analyst Kazuyoshi Saito of Iwai Cosmo Securities warned that a long shutdown "could worsen capacity constraints for manufacturers already running at maximum utilization to meet AI-related demand." Kioxia said it does not expect immediate production or earnings impact this quarter due to alternative sourcing and existing inventory. Sony's semiconductor unit declined to comment on suppliers.

Global NF₃ production is concentrated among a handful of companies, including South Korea's SK Materials and Hyosung, Germany's Merck, and Japan's Kanto Denka and Mitsui Chemicals. While Chinese producers such as China National Chemical Corporation's subsidiary CSIC Special Gas are rapidly expanding capacity, industry experts note that high-purity grades—critical for advanced semiconductor processes—remain in tighter supply.

With Kanto Denka's output disrupted and Mitsui's planned exit, industry observers say the market could face a shortfall in ultra-high-purity NF₃, creating opportunities for emerging suppliers but heightening risks for chipmakers dependent on stable deliveries of this vital process gas.