SK Hynix, the world’s second largest memory chip manufacturer after Samsung Electronics, has jointly developed the industry’s first neon gas recycling technology with South Korean specialty gas manufacturer TEMC.
According to SK Hynix, the technology could reduce neon purchasing costs by 40 billion won ($30 million) a year if used in semiconductor factories.
Neon’s ability to generate a stable electrical discharge makes it essential for excimer or ultraviolet lasers in chip manufacturing lithography.
In these lasers, neon acts as a buffer gas, ensuring the stability of the laser’s emission wavelength, which is important for etching the precise patterns required in the lithography process of chip fabrication.
For manufacturers such as SK Hynix, Samsung, Intel, and TSMC, neon is typically sourced from countries such as Ukraine, Russia, and China.
About 45-54% of the world’s semiconductor-grade neon comes from Ukraine. Neon prices have soared in recent years due to the conflict between Russia and Ukraine, which continues to disrupt international supply chains.
Gas import prices rose from $58 in 2021 to a peak of $1,612 per liter in 2022.
In 2022, SK Hynix announced that it had increased the use of locally sourced neon in chip production to 40%, making it the first Korean chipmaker to locally source neon gas.
At the time, the company announced its intention to use 100% locally produced neon gas by 2024.
SK Hynix is not the only chipmaker exploring alternative neon sourcing routes. Earlier this year, Samsung announced that it would use recycled neon gas in chip manufacturing starting in 2025.
According to KED Global, the chip giant will recover neon gas from the laser waste stream and local partners will refine the recycled neon.
neon recycling
Neon is typically used in a lithography process and then released into the air by chip manufacturers. To recycle the gas, the partners use scrubbers to capture the neon gas and collect it in tanks after lithography.
The gas is then selectively separated and purified using TEMC’s gas treatment process before being delivered to SK Hynix for reuse in semiconductor manufacturing.

©SK Hynix
According to the company, the neon recovery rate is 72.7%, but they plan to increase it to 77% by improving purification yield.
“SK Hynix was able to develop this technology as a result of close cooperation and synergies with material and equipment partners who have expertise in their respective fields,” a company spokesperson said.
The development of this technology was led by a subcommittee of SK Hynix’s Carbon Management Committee. The Material Recycling Department is responsible for securing recycling technology for materials that have not been chemically modified.
The company aims to develop recycling technology for a total of 10 types of raw materials, including neon, deuterium, hydrogen, and helium gas, by 2025.
SK Hynix has announced a medium- to long-term roadmap to promote the use of recycled materials, aiming to increase the percentage of recycled materials used in products to 25% by 2025 and over 30% by 2030. .
“Ultimately, SK Hynix plans to overcome the uncertain supply of raw materials, which are mainly imported from overseas,” the spokesperson added.