# Ultra-pure wet chemicals: Cycles

How memory slumps and AI booms swing wet chemical demand

Source page: https://www.materialinsights.org/chemicals/wet_chemicals/cycles/

What this tab covers How its prices and margins move: past booms and busts with price levels, the spread or margin that the industry watches, the drivers of the cycle and the metrics to track.

Demand follows wafer starts and the number of cleaning and etch steps, so volumes dip in memory downturns (2019, 2023) and rise with new fabs. Prices are contract-based and stable; the big swings are in base-chemical costs (sulphuric acid in 2022 and 2026, HF with fluorspar) and in supply shocks such as Japan's 2019 HF curbs on Korea. Listed suppliers' electronics segments show the cycle better than public prices.
 The spread to watch **Not applicable (contract-priced specialties)**

Margin cycles show in segment results of Entegris, Merck, Soulbrain and Kanto rather than in a public spread.

#### Booms and busts

1. 2019

Japan tightened exports of high-purity HF, photoresist and fluorinated polyimide to Korea. Korean fabs qualified Soulbrain and other suppliers within months (indicative).

not published

2. 2022-2023

Memory downturn cut wafer starts in 2023 after record 2022 demand; base sulphuric acid spiked in 2022 (sulphuric acid tile).

not published for electronic grades

3. 2025-2026

AI chip demand and new fabs lifted demand; base acid prices rose again in 2026 as China halted acid exports (sulphuric acid tile).

market $4.58 billion (2025) to $5.00 billion (2026) (Straits Research)

#### What drives the cycle

- **Wafer starts and step counts.** 3D NAND and advanced logic add cleans and etches per wafer.
- **Fab localisation.** New fabs in the US, Japan, Europe and India need local suppliers.
- **Base chemical prices.** Sulphuric acid and HF price shocks pass through over time.
- **Export controls.** Japan 2019 and US-China controls reshape supplier choice.

#### Metrics to track

| Metric | Why it matters | Where to track it |
|---|---|---|
| **Semiconductor wafer starts and fab capacity** | Demand | SEMI World Fab Forecast |
| **Wet chemical market estimates** | Market size | TECHCET; Straits Research |
| **Electronics segment sales of suppliers** | Revenue cycle | Entegris, Merck, Soulbrain filings |

## Other sections

- [Summary](https://www.materialinsights.org/chemicals/wet_chemicals/index.md)
- [Overview](https://www.materialinsights.org/chemicals/wet_chemicals/overview/index.md)
- [Correlation](https://www.materialinsights.org/chemicals/wet_chemicals/correlation/index.md)
- [Production route](https://www.materialinsights.org/chemicals/wet_chemicals/routes/index.md)
- [Production](https://www.materialinsights.org/chemicals/wet_chemicals/production/index.md)
- [Feedstocks](https://www.materialinsights.org/chemicals/wet_chemicals/feedstocks/index.md)
- [Trading](https://www.materialinsights.org/chemicals/wet_chemicals/trading/index.md)
- [Movement](https://www.materialinsights.org/chemicals/wet_chemicals/movement/index.md)
- [Regulation](https://www.materialinsights.org/chemicals/wet_chemicals/regulation/index.md)
- [Characteristics](https://www.materialinsights.org/chemicals/wet_chemicals/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/chemicals/wet_chemicals/emissions/index.md)
- [Relationships](https://www.materialinsights.org/chemicals/wet_chemicals/links/index.md)