Japan Gas Plant Fire Spurs Fears of Chip Supply Chain Disruption

A fire broke out at a Japanese industrial gas plant owned by Kanto Denka Kogyo Co., raising concerns about potential disruptions to the global semiconductor supply chain. The factory is a critical supplier of neon gas, a crucial component used in the production of semiconductor chips. The fire caused no injuries, but the extent of the damage and the impact on the plant's production capacity are still unknown. Neon gas is a byproduct of steel manufacturing and is a vital resource for the semiconductor industry, particularly for the laser-based lithography process used in chip production. The semiconductor industry has already been grappling with supply chain issues due to the COVID-19 pandemic and the global chip shortage. The potential disruption from the fire at the Kanto Denka Kogyo plant has raised concerns among tech companies and experts, who warn that it could further exacerbate the ongoing supply chain challenges and potentially impact the availability and prices of semiconductor chips worldwide.