Alert! The largest chemical ban in EU brewing history
Recently, the European Union began to consider a proposal to ban the widespread use of perfluoroalkyl and polyfluoroalkyl substances (PFAS), which are potentially harmful substances known as "permanent chemicals", which may have a significant impact on the supply chain of many industries, including semiconductors.
Due to its extremely stable chemical structure and unique chemical characteristics, as well as its water and oil resistance, PFAS has been highly favored by manufacturers for a long time. It will be used in the production of tens of thousands of products, including automobiles, textiles, medical equipment and non-stick pans.
However, studies in recent decades have found that PFAS is highly associated with health risks such as cancer, hormone dysfunction, weakened immune system and environmental damage.
Five European countries, including Germany and the Netherlands, have proposed that the EU phase out "permanent chemicals". In a recent joint statement, they said that if the proposal was adopted, it would become "one of the largest bans on chemical substances in the history of Europe".
If this legislative proposal is approved, it will enter into force as early as 2026. According to the draft proposal, once the ban takes effect, relevant enterprises will have a transition period of 18 months to 12 years to introduce PFAS substitutes, which depends on the importance of relevant industries and the availability of substitutes.
Some industries, such as medical equipment parts, will be allowed to have a transition period of up to 12 years, while other ordinary industries must be adjusted within 18 months
PFAS substitutes are hard to find
The full English name of PFAS is per/polyfluoroalkyl substituents, namely perfluoroalkyl and polyfluoroalkyl compounds. Due to their special physical and chemical properties, PFAS is often used to manufacture daily necessities with antifouling, waterproof and grease resistance.
In short, PFAS is widely used in the whole industry and consumer goods because of its high temperature and corrosion resistance. And in many cases, there is no substitute.
Its nickname of "forever chemical" stems from the fact that the carbon-fluorine bond of PFAS is the strongest in organic chemistry, which means that it is not easy to decompose and accumulate in human body and environment over time.
Some of them are related to the injury of unborn infants, the injury of human internal organs and the pollution of water and wildlife.
At present, in the EU REACH regulation, there are many PFAS substances in the candidate list of substances of high concern (SVHC), including perfluorooctanoic acid (PFOA), perfluoroononanoic acid and its sodium and ammonium salts, perfluoroodecanoic acid (PFDA) and its sodium and ammonium salts, perfluorooctane sulfonate (PFBS) and its salts.
It is reported that the ban will be introduced as a restrictive measure of the EU REACH regulation, and will apply to PFAS itself and other substances, mixtures and products with a concentration of more than 25 parts per billion.
At present, some manufacturers and enterprise users of "permanent chemicals" have formed a lobby group FPP4EU under the European Chemical Manufacturers Association (CEFIC), including 14 companies including BASF, 3M, Bayer, Solvay Group, Merck, etc.
They said that the ban would have a "huge impact" on many products in daily use, and the group would make suggestions in public consultation on which areas need to be exempted urgently.
Jonathan Crozier, the advocacy and communication chairman of FPP4EU, said, "The main concern of FPP4EU is that the relevant proposals may disrupt some supply chains."
Are chips and other industries facing major challenges?
In the list of industries that may cause injuries under the "permanent chemicals" ban, the chip industry undoubtedly stands out. Some local chip suppliers in Europe have warned that the EU's ban on "permanent chemicals" will cause widespread damage to the already strained semiconductor supply chain.
Chemours, the main supplier of high-end fluoropolymers, warned that these "permanent chemicals" were "absolutely vital" to the semiconductor manufacturing industry and other broad industries.
Denise Dignam, director of high-performance materials at Chemours, said, "If we didn't have these materials, there would be very serious chaos in the world. I can't imagine how you would carry out those (semiconductor) manufacturing processes without these materials."
Iwaki is a leading manufacturer of chemical treatment pumps in the world. The company said that due to supply shortages and rising costs, restrictions at the European level may lead to "more interruptions and eventually lead to price increases".
The proposal released a few days ago predicted that the use of "permanent chemicals" in the electronics industry would increase by 10% annually, which was mainly driven by the soaring demand for chips. As chip manufacturers expand their production capacity, some of the most critical PFAS have been in short supply before.
Some senior executives in the semiconductor industry said that in the past two years, the price of PFA fluoropolymer, one of the most critical PFAS derivatives used in chip manufacturing, has soared by 70% - 80% due to the shortage of supply caused by strong demand. Although the chip industry is currently depressed, it is expected that this price will rise further 20% this year.
In fact, if the EU finally decides to implement the ban of PFAS, some semiconductor industries and their supply chains are trying to put themselves on the list of a longer 12-year transition period rather than the more urgent 18 months.
Dignam of Chemours warned that "regulators must consider the entire supply chain when considering the ban, because chips are crucial to everything from cars to mobile phones. Trying to control a class of chemicals is as difficult as trying to control diesel or olive oil."
