Lincoln International's chemicals team examines the semiconductor gas market.

Semiconductor Gas Solution Processes

• In chemical vapor deposition, gas, including helium and fluorine options, is used to maintain tight tolerance temperature levels while the semiconductor substrate is brought to the appropriate temperature to trigger the desired reaction.
• In photolithography, hydrogen is needed to react with the tin hydride so that it does not deposit on the semiconductor while the image is being transferred onto the substrate.
• In etching, the shape and pattern from the photolithography process is permanently etched on, etchant gases are frequently carbon-based, containing fluorine, and react at the substrate level to drive the selectivity of the target film.
• In doping, atoms are added to semiconductor material to drive the conditions under which the semiconductor layer will conduct electrons – arsine and phosphine are used here to help manage this delicate process.
• In annealing, an existing film layer is modified by a reaction with hydrogen or oxygen at high pressures and temperatures.
• In chamber cleaning, gases such as nitrogen trifluoride are used to fully purge the chamber between process steps as even trace levels left behind can unbalance the reaction.

The semiconductor gas market is a global industry with major players including Air Liquide, Air Products & Chemicals, Iwatani, Linde, SK Materials and Versum. There is though an opportunity in the market for smaller, more focused providers of high-purity applications and differentiated compression capabilities. Difficult to source and difficult to handle materials can also provide a major point of differentiation for specialty gas providers who are able to adeptly provide safe solutions there. From the M&A vantage point, Merck’s nearly $6 billion acquisition for Versum at a 14.5x EV / LTM EBITDA multiple still serves as the near-term light post in the space.

Safety is paramount when it comes to semiconductor gas handling and production. In order to achieve an optimal level of performance, gases must be handled with great care as they can become unstable depending on the phase of the production process and need. This demonstrated experience and ability to perform can serve as a meaningful barrier to entry for companies in the space. The ability to produce high-purity gases is also often a process that involves significant trade secrets and tribal knowledge. The development of next generation gases is already underway and will play a major role in enabling more advanced semiconductor production.