Hurricane Katrina hit a plant owned by Air Products and Chemicals Inc. that produces hydrogen used in the deposition of epitaxial films. Epi wafers are used to make higher-voltage semiconductors used in power management applications.

Air Products is one of the major suppliers of hydrogen used for this application, iSuppli said, and the company's industrial gas complex in New Orleans is the site of much of its hydrogen manufacturing activity.

Air Products has alerted customers that it will be unable to fulfill its obligations for delivery of liquid hydrogen, iSuppli said.

Although the extent of the damage to the facility is unknown, Air Products reportedly has indicated it will be working to restore operations quickly. The timing of the plant's restart will depend on the availability of power, utilities, communications, infrastructure access and the extent of the damage.

Initial company assessments say that damage from the hurricane will affect Air Products' capability to supply customers with hydrogen from the New Orleans plant for an extended period. To make matters worse, an Air Products liquid hydrogen production facility in Canada will be experiencing a scheduled shutdown.

It is not clear yet what the effect of the supply disruption will have on wafer production. Other suppliers of electronic-grade hydrogen are increasing their output to compensate for the shortfall, and alternative purification techniques are being implemented by silicon manufacturers that will allow lower grades of hydrogen gas to be used.

By: DocMemory
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