Research Report Interpretation: AI Computing Power Triggers a “Multiplier Effect” in Gases, Creating a Golden Window for Domestic Substitution of Electronic Specialty Gases
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Research Report Interpretation: AI Computing Power Triggers a “Multiplier Effect” in Gases, Creating a Golden Window for Domestic Substitution of Electronic Specialty Gases
Leading electronic gas companies are seizing a historic opportunity for simultaneous growth in both volume and price.
Navigating Web3 tides with focused insightsAuthor: Rita
TideResearch Insight
China International Capital Corporation (CICC) released an in-depth report on the electronic specialty gases and electronic bulk gases industry on June 26. The report states that AI computing power demand is propelling electronic gases into a phase of multiplicative growth. Due to China’s export controls on high-purity tungsten, Japan’s supply of tungsten hexafluoride (WF6) has been disrupted, creating a substitution opportunity for Chinese enterprises—driving simultaneous expansion in both demand and market share. Leading electronic gas companies are thus experiencing a historic opportunity characterized by rising volumes and prices.
Electronic Gases: Foundational Materials for Semiconductors
Electronic gases rank second only to silicon wafers among semiconductor manufacturing materials, accounting for approximately 13% of the wafer fabrication materials market. Depending on application, electronic gases are categorized into electronic bulk gases (e.g., high-purity nitrogen, oxygen, argon) and electronic specialty gases (used in etching, deposition, cleaning, doping, and other processes).
According to TECHCET data, the global electronic gas market for semiconductors is projected to reach approximately USD 6.34 billion in 2025 and exceed USD 7 billion by 2028. China’s electronic gas market is growing even faster: the domestic electronic specialty gas market expanded from RMB 10.5 billion in 2017 to RMB 19.5 billion in 2024, and is expected to reach RMB 25.6 billion by 2028. This growth is driven by dual forces—expansion of downstream wafer fabs and continuous process node advancements.
AI Computing Power Ignites “Multiplicative Effect” in Demand
Global AI infrastructure construction has entered an upward cycle. According to TrendForce, global foundry revenue is projected to grow 24.8% year-on-year to USD 218.8 billion in 2026; capital expenditures by the top eight cloud service providers (CSPs) are expected to increase ~61% YoY; and global AI server shipments are forecast to grow over 28%.
The AI-driven boost to electronic gases stems not only from wafer fab expansions but, more critically, from increased gas consumption per wafer. The number of etching steps rises from ~20 at the 65nm node to ~140 at the 7nm node, resulting in multiplicative growth in gas usage for etching, deposition, and cleaning. For HBM, deep silicon etching using through-silicon vias (TSV) requires sulfur hexafluoride (SF6) and octafluorocyclobutane (C4F8). Increasing 3D NAND stacking layers also directly drives up etchant gas demand.
Changing demand structures are reshaping the market space for electronic specialty gases. According to QY Research, the combined market size of the top ten electronic specialty gases globally will reach ~USD 7.4 billion in 2025, with nitrogen trifluoride (NF3), ammonia (NH3), and silane (SiH4) ranking first, second, and third. NF3, WF6, and hexafluorobutadiene (C4F6) are primarily used in logic devices, DRAM/HBM, and 3D NAND manufacturing—making them the most direct beneficiaries of AI computing power demand.
Domestic Substitution Window: Supply Shortage of Tungsten Hexafluoride
The global electronic gas market has long been dominated by four international giants—Linde, Air Liquide, Air Products, and Nippon Sanso—collectively holding over 70% market share. While some domestic specialty gas producers have achieved breakthroughs in specific products, overall market share remains low, with the domestic localization rate in integrated circuit applications standing at ~25%.
However, the supply landscape is shifting. According to Caixin Media, due to China’s export restrictions on high-purity tungsten, Kanto Denka and Central Glass notified Korean customers in April 2026 that their inventories had been depleted, and WF6 supply may be unsustainable in the second half of 2026. Japanese suppliers account for ~24% of global WF6 supply; the disruption has created a significant supply gap.
Meanwhile, domestic capacity is expanding rapidly. CSIC Special Gases has reached a WF6 production capacity of 2,000 tons and plans an additional 1,000 tons, bringing its total planned capacity to 3,000 tons by 2027—the largest globally. HaoHua Technology and Zhongju Core each possess 600 tons of capacity, while Heyuan Gas aims to commence trial production of its 600-ton facility in 2026. WF6 prices have surged sharply: according to China’s General Administration of Customs, the average export price rose to ~RMB 950,000 per ton in the first five months of 2026; as of June 24, quotations for 6N-grade material stand at RMB 2–2.5 million per ton.
Electronic Bulk Gases: Overlooked Long-Term Cash Flow
Though less market-visible than specialty gases, electronic bulk gases offer unique business model advantages. Given semiconductor customers’ extremely high requirements for supply stability, electronic bulk gases are predominantly supplied via on-site generation, under long-term contracts—often lasting 15 years or more—and typically employ “take-or-pay” arrangements to secure stable, long-term cash flows.
Currently, foreign players still dominate China’s electronic bulk gas market. However, since breaking the foreign monopoly in 2018, Guanggang Gas has captured 25.4% of newly commissioned capacity in China’s electronic semiconductor sector—ranking first. As of end-2025, Guanggang Gas has secured approvals from 10 12-inch wafer fabs. In 2024, China’s electronic bulk gas market size was ~RMB 9.7 billion; Guanggang Gas generated RMB 1.487 billion in electronic bulk gas revenue, representing ~15% market share—with further room for growth.
Multidimensional Growth Opportunities for Domestic Enterprises
Within this value chain, domestic enterprises enjoy multiple growth levers. Specialty gases linked to AI—including NF3, WF6, and C4F6—exhibit the highest demand elasticity, offering the most direct volume-and-price upside. Meanwhile, silicon-containing specialty gases such as dichlorosilane (DCS) and trichlorosilane (TCS), used in silicon epitaxial wafers and advanced deposition processes, remain heavily import-dependent—presenting equally broad domestic substitution potential. Companies including Sanfu Co., Ltd., Heyuan Gas, and Jinhong Gas are actively advancing capacity expansion and customer qualification.
Electronic bulk gases, supported by long-term contractual frameworks, deliver stable cash flows and foster deep integration with downstream clients—yielding highly visible marginal returns from capacity expansion. This explains why analysts are bullish both on the volume-and-price growth of specialty gases and the steady growth of bulk gases.
For investors with a 3–5 year horizon, the growth trajectory of the electronic gas industry is highly certain. Short-term risks include macroeconomic volatility, intensifying industry competition, and rising raw material costs—but supply constraints and upward pricing pressure continue to underpin industry fundamentals.
Disclaimer
This article is a summary and interpretation of a third-party securities firm research report by TideResearch. Views and judgments cited herein reflect those of analysts at China International Capital Corporation (CICC) (Yang Lin and Zhang Xinyu, June 26, 2026) and represent solely the position of their affiliated institution—not TideResearch’s views nor any investment recommendation.
Please note three points when reading: First, the value of research reports lies in their core logic and underlying assumptions—not in isolated market-size forecasts. Second, sell-side reports are inherently bullish, and some covered companies may have investment banking relationships with the issuing firm. Third, markets carry risk; decisions must be made independently.
Markets involve risk; decisions must be made independently. This article should not serve as the basis for buying or selling any securities.
Data Sources: CICC Research Report (Yang Lin, Zhang Xinyu, June 26, 2026) · TECHCET · TrendForce · QY Research · Caixin Media · General Administration of Customs of China
TideResearch · 2026 June
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