3M Chip Coolant Plant Shutdown and ESG Regulations

The global semiconductor industry is likely to be affected yet again with the shutdown of 3M’s Belgian chip coolant plant. The 3M plant was ordered to shut down on March 8th due to tightened ESG regulations, which has upset the global chip coolant production that is essential in semiconductor manufacturing. 3M accounts for 90% of the global coolant production and its closure will further exacerbate the global chip crisis. With top companies relying on coolant from this plant, an analysis of this indefinite disruption and its impact on future pricing is necessary.