Neon gas, which is used in the semiconductor industry for wafer fabrication and excimer laser gas for lithography, had experienced a significant price increase of 20 times last year due to the disruption caused by Russia-ukraine war.

This led to supply chain issues and customers stocking up on inventory.         

At one point, the price of neon gas for China chipmakers reached 160000 RMB per 47 liters.        

However, the price has now dropped to 30000 RMB per 47 liters, likely due to the increased use of Chinese and local vendors for the gas.         

The drop in demand for chips has also resulted in a lower operation rate for fabs owned by Samsung and SK Hynix.         

Industry experts predict that chipmakers expect the price of neon gas to return to pre-war levels.