Introduction: The European Union is planning to initiate legislation to ban tens of thousands of perfluoroalkyl and polyfluoroalkyl compounds (PFAS) involving "permanent chemicals". It is reported that five countries including Germany, the Netherlands, Denmark, Sweden and Norway strongly support this proposal, and if the proposal is approved, it will be implemented as soon as 2026. PFAS is widely used, found in electronic equipment, wind turbines, solar panels, cosmetics, medical equipment, industrial equipment and cookers, and is critical to chip manufacturing.
After the news came out, major European chip suppliers warned that if the ban is implemented, it will cause great disruption to the industry.
According to the data, due to its extremely stable chemical structure and unique chemical properties, as well as water and oil resistance, PFAS has long been favored by manufacturers, including automobiles, textiles, medical equipment and non-stick pans. The chemical is used in the production of tens of thousands of products. But studies in recent decades have found a high association between PFAS and health risks such as cancer, hormone dysfunction, weakened immune systems and environmental damage.
Five European countries, including Germany and the Netherlands, have proposed a European Union phase-out of "permanent chemicals", which, if approved, would be "one of the largest bans on chemical substances in European history", they said in a joint statement.
"In the long run, banning the use of PFAS will reduce the amount of PFAS in the environment, which will also make related products and processes safer for humans," they added.
If the proposed legislation is approved, it could take effect as early as 2026. According to the draft proposal, once the ban takes effect, companies will have a transition period of 18 months to 12 years to introduce alternatives to PFAS, depending on the importance of the relevant industry and the availability of alternatives. Some industries, such as medical device components, would be allowed a transition period of up to 12 years, while other general industries would have to adjust within 18 months.
The chip industry is certainly on the list of industries that could be hurt by a ban on "permanent chemicals". Some local chip suppliers in Europe have warned this week that the European Union's ban on "permanent chemicals" will cause widespread disruption to the already strained semiconductor supply chain.
Chemours, a leading supplier of high-end fluoropolymers, warned that these "permanent chemicals" were "absolutely critical" to semiconductor manufacturing and a wide range of other industries.
Denise Dignam, head of performance materials at Chemours, said: "If we didn't have these, there would be a very serious disruption in the world, and I can't imagine how you would do those [semiconductor] manufacturing processes without these materials."
After all, the proposal also predicts that the use of "permanent chemicals" in the electronics industry will grow at an annual rate of 10%, largely driven by soaring demand for chips. Some of the most critical PFAS have already been in short supply as chipmakers expand capacity.
The price of fluoropolymer PFA, one of the most critical PFAS derivatives used in chip manufacturing, has surged 70-80 per cent in the past two years due to supply shortages caused by strong demand, according to semiconductor industry executives. Despite the current downturn in the chip industry, the price is expected to rise by a further 20% this year.
In fact, if the European Union does finally decide to implement the PFAS ban, parts of the semiconductor industry and its supply chain are trying to put themselves on the list for a longer 12-year transition period rather than the more pressing 18 months.
Chemours' Dignam warns that "regulators have to consider the entire supply chain when considering a ban because chips are vital to everything from cars to mobile phones. Trying to regulate a class of chemicals is as daunting as trying to regulate diesel or olive oil."