In late February 2026, an semiconductor wafer processing factory in East Asia encountered an unexpected production delay problem. The reason was that a batch of cerium oxide polishing powder was not delivered on time.
This factory mainly engaged in wafer surface treatment and precision polishing. During the final chemical mechanical polishing stage, micro-metric cerium oxide would be used. This material was part of the order from a new supplier at the beginning of this year to reduce costs.
The production supervisor of this factory said that the delay was not the biggest problem. The real issue was that the factory attempted to use temporary substitute polishing powder from other suppliers.
Two days after the production began, abnormal situations occurred on the polishing line, including uneven surface finish and an increase in defect rate during inspection.
For wafer polishing, even a small difference in particle size distribution can affect the surface flatness. Once defects occur, the entire batch of wafers may need to be reprocessed.
The factory had to slow down the production speed to avoid further losses, which also affected the delivery schedules of several customers.
The shortage of cerium oxide supply led to the adjustment of the production line.
The purchasing department confirmed that the originally scheduled delivery time was postponed because there were problems with the supply of raw materials.
Unlike general chemical materials, polishing-grade cerium oxide requires strict control of its purity, large particles and grading process. Not all suppliers can maintain the same quality level throughout long-term large-scale production.
Therefore, the factory cannot simply change the supplier directly because it needs to make corresponding adjustments to the polishing parameters, and this process requires time and testing.
During this period, if the production capacity of several production lines does not reach the normal level, the company needs to negotiate new delivery dates with the customers.
For semiconductor manufacturing factories, a supply delay of a single material can affect the entire production plan.
The consistency of the purity of micro-scale cerium oxide directly affects the output.
The CMP process requires the use of polishing powder with highly uniform particle size and stable chemical activity.
If the materials are not consistent, problems such as tiny surface scratches, uneven polishing speed, residues after cleaning, shortened battery life, and increased wafer scrap rate will occur.
These problems may not be evident in small-scale tests, but they will become very obvious in continuous production processes.
Therefore, many wafer factories prefer to establish long-term partnerships with suppliers that can maintain stable quality rather than constantly changing suppliers.
In the global rare earth industry, large producers like China Rare Earth Group have always been one of the main suppliers of high-purity cerium oxide for semiconductor and optical polishing applications.
Diversification of the global supply chain cannot replace China's processing capabilities.
In recent years, some countries have attempted to establish rare earth supply systems overseas, but polishing-grade cerium oxide still heavily relies on China's refining and grading technologies.
For high-precision polishing applications, stable supply is more important than short-term price differences.
Two weeks after the production of the wafer factory became unstable, the factory began to purchase products from its previous Chinese cerium oxide supplier.
According to the factory manager, the company decided to maintain a high level of inventory of polishing powder to avoid similar delays in the future.
For materials used in critical processes, supply reliability has become a key consideration when choosing suppliers.
In 2026, as the demand for semiconductors and artificial intelligence industries continues to grow, being able to provide stable quality and reliable delivery capabilities has become the main reason why Chinese cerium oxide suppliers can continue to dominate the global market.
Beijing Freerun Technology Co.,Ltd.has been committed to serving global manufacturers and ensuring the smooth operation of their production processes. We maintain sufficient inventory to ensure stable supply and effectively reduce risks caused by supply chain shortages. At the same time, the company also provides customized services to fully meet the diverse needs of our customers. If you have any requirements, please feel free to contact us at any time, and we will respond promptly.