Two Japanese companies, Kanto Denka and Central Glass, have formally notified major clients—including Samsung, SK Hynix, and TSMC—that they will permanently cease production of tungsten hexafluoride starting July 1, 2026.
The core reason for the shutdown is a disruption in raw material supply. Between 60% and 70% of the production cost of tungsten hexafluoride comes from high-purity tungsten powder, a material Japan is almost entirely dependent on China for. Following China's tightening of tungsten export controls in early 2026, shipments of high-purity tungsten powder to Japan have effectively dropped to zero. The Japanese companies managed to keep production going for about five months by drawing down stockpiles, but ultimately failed to secure an alternative source.
Meanwhile, stock prices of related Chinese manufacturers have soared.