Gujarat Fluorochemicals Limited (GFL) stands apart in the highly specialized fluoropolymer market through a combination of deep technical capabilities, forward-looking investments, and a strategic global outlook. Kapil Malhotra, Global Business Unit Head - Fluoropolymers, Gujarat Fluorochemicals shares his perspective on the emerging market dynamics and GFL’s preparedness to cash in on new opportunities… 

How do you see the Industry dynamics, particularly in the automotive, semiconductors, EV and ESS industries, to provide large scale opportunities for value-added fluoropolymers, which should translate into higher revenues and margins for GFL? 

In the automotive industry, there has been a growing shift towards electric vehicles (EVs), increasing the demand for durable and high-performance materials. GFL’s fluoropolymers play a vital role in this particular application for wire and cable insulations, seals, gaskets, hoses and membranes. This indicates that with the strong and growing demand for EV, the volume demand for fluoropolymers will also grow substantially. The EV batteries and Energy Storage Systems (ESS) also use advanced fluoropolymers as coatings for separators, electrolyte additives and liners. With large players looking for safety and durability, we are highly optimistic about the future as GFL’s fluoropolymers have an excellent track record in both areas. 

In the semiconductor segment, GFL has already seen a great demand for fluoropolymer parts made out of PTFE, PFA and PVDF. With the global expansion of AI, IoT, and 5G/6G, and multi-billion-dollar investments by companies like TEL, Intel, Samsung, Tata, Adani, the semiconductor industry is most likely to require ultra-pure chemical handling systems. GFL’s fluoropolymers, especially PFA, PVDF, and PTFE are and will be witnessing demand for applications like CMP, etching system parts, wet systems, tubes, and lining equipment. 

What specific role do fluoropolymers play in semiconductor manufacturing and why are they essential? 

In the semiconductor manufacturing industry, fluoropolymers are critical as the processes involve extreme purity, high temperatures and aggressive chemicals.

Some specific roles of fluoropolymers include chemical handling where PTFE, PFA, PVDF pipes, tubes, valves, and tanks are used in processes that involve high corrosive chemicals. Another is wafer processing, with exposure to acids and plasma, fluoropolymer coatings are used to protect chambers and parts from degradation, extending equipment life and preventing contamination. Chemical Mechanical Planarization where CMP slurries used to polish wafers require slurry delivery lines made of fluoropolymers to eradicate contamination. Gas Delivery Systems has specialty gases like CF₄ used in etching that require fluoropolymer-lined gas tubings to prevent chemical reactions and particle shredding. Filtration Systems have fluoropolymer membranes being used in filters that remove ultra-fine particles from chemicals and gases.

How do you foresee the demand for fluoropolymers evolving in the semiconductor market over the next five years? 

With continued fab expansions by TSMC, Intel, Samsung, Hynix, Micron in the US, Europe, Japan, Korea, Taiwan and new players like Tata expanding in India, there is an estimated US$ 700+ billion of fab Capex planned worldwide, by 2030. 

As process nodes shrink (5nm, 3nm, 2nm), purity and material performance requirements skyrocket. This sets a very strong background for material consumption, including fluoropolymers. The demand for fluoropolymers in semiconductors is expected to grow at a CAGR of over 8-12 per cent (with the overall semiconductor volume growth expected at 6 per cent). PFA and UHP PFA, will see even higher growth of about 12-15 per cent because of the advanced chip sizes. 

How is GFL gearing to cater to the growing demand of fluoropolymers - PTFE, PFA, FEP, FKM, PVDF and Additives?  

GFL has been very active in capitalizing on the fluoropolymer demand surge. With heavy investments in expanding the production capacity, new facilities, testing equipment and R&D centers, GFL’s expansion is targeted at high-margin applications. GFL has also been broadening its product basket beyond PTFE, to cater to the demand in EV, SC, UPW and battery segments. The company is also focusing on actively expanding sales in US, Europe, and Japan markets, critical for semiconductor fabs, EV battery manufacturers and high-end industries. GFL is also focusing on targeting stringent certifications and regulatory approvals to qualify for the highest value supply chains. 

What are the emerging trends or technologies in fluoropolymers that GFL believes will redefine their use in the semiconductor industry? 

Some of the emerging trends and technologies which will define the use of fluoropolymers in the semiconductor industry include Ultra-High Pure (UHP) grades; next-gen plasma-resistant materials, tailored melt-processable materials; high purity PFA, PVDF; surface modified fluoropolymer coating material; environmentally safer fluoropolymers; specialty compounding facilities; and regulatory preparedness. 

How does GFL contribute to innovation in fluoropolymer production or application for semiconductors?  

GFL is in constant touch with end customers and equipment manufacturers to understand their requirements in terms of quality, purity and technical specifications. We are equipped with state-of-the-art R&D setup to develop grades and products for the semicon industry. 

How do geopolitical factors and supply chain issues affect the production and distribution of fluoropolymers in the semiconductor sector? 

The production and distribution of fluoropolymers in the semiconductor industry are increasingly influenced by a combination of geopolitical and supply chain dynamics. A major factor is the sector’s heavy dependence on China for critical raw materials and processing capabilities, which makes it vulnerable to shifts in global political relationships. The rise of export controls and trade restrictions, particularly between major economies, has further complicated cross-border movement of specialized materials. Additionally, persistent supply chain bottlenecks, such as limited transportation infrastructure and port congestion, have strained timelines and inventories across regions. Compounding these issues are evolving regulatory pressures, especially concerning environmental compliance and product stewardship, which vary significantly across jurisdictions. 

In light of increasing environmental regulations, how is GFL adapting its fluoropolymer solutions to meet sustainability standards? 

GFL has taken a proactive and leadership-driven approach to evolving environmental regulations, positioning itself as a global front-runner in regulatory compliance within the fluoropolymer industry. We have consistently anticipated changes in sustainability standards and have developed products that not only meet but often exceed these regulatory requirements. Our R&D teams work closely with global stakeholders to ensure that our fluoropolymer solutions are aligned with the latest environmental expectations, ensuring both performance and responsibility go hand in hand. 

How do you see the competitive landscape in the fluoropolymer space, particularly regarding their application in semiconductors? 

The global fluoropolymer market for semiconductors has historically been dominated by a handful of high-end players. However, recent structural shifts — including geopolitical decoupling and tightening regulatory frameworks — have disrupted this equilibrium, creating clear gaps and new opportunities in the market. GFL is strategically positioned to fill this void and emerge as a formidable challenger across a broad spectrum of applications. In the semiconductor space, success is defined not merely by scale or cost competitiveness, but by a deep command of technical sophistication, an area where GFL continues to demonstrate strong capabilities and innovation. 

What differentiates GFL’s products or services from those offered by competitors in this niche market?  

GFL stands apart in the highly specialized fluoropolymer market through a combination of deep technical capabilities, forward-looking investments, and a strategic global outlook. Our key differentiators include backward integration in raw materials, aggressive capacity expansion, focused new product development, strategic global expansion, and proactive regulatory compliance. As the first major Indian player in ultra-high-purity (UHP) fluoropolymers, GFL is now one of the few globally trusted fluoropolymer sources of Indian origin. 

How closely GFL works with semiconductor manufacturers to develop tailor made fluoropolymer solutions?  

GFL is evolving beyond the traditional supplier role to become a true materials co-development partner for the semiconductor industry. Our collaboration begins early, often during fab design cycles, allowing us to tailor fluoropolymer solutions at the molecular level to meet precise performance demands. We actively participate in global qualification programs, ensuring our materials meet stringent international standards. Additionally, our model includes near-customer technical support, enabling faster iterations, quicker issue resolution, and deeper alignment with customer roadmaps. This integrated approach positions GFL as not just a vendor, but a strategic innovation partner in the semiconductor value chain. 

What are the key challenges GFL faces in supplying fluoropolymers for semiconductor applications? 

While GFL is well-positioned in the semiconductor fluoropolymer space, operating in this high-stakes, innovation-driven segment comes with its own set of complex challenges. These include lengthy qualification timelines, high technical entry barriers, continuous innovation for evolving processes, and navigating regulatory compliance. 

How do you envision the role of fluoropolymers in emerging technologies like AI, IoT, and Quantum Computing? 

Emerging technologies such as AI, IoT, and Quantum Computing are driving the evolution of next-generation semiconductor chips, demanding higher performance, greater miniaturization, and extreme reliability. This directly translates to increased usage of fluoropolymers, given their unmatched chemical resistance, thermal stability, and ultra-high purity characteristics. As chip designs become more complex and process environments more aggressive, fluoropolymers are playing an increasingly critical role in enabling the materials infrastructure that powers these technologies. 

What are GFL’s long-term strategic goals in the fluoropolymer segment of the semiconductor industry? 

GFL’s long-term vision is to establish itself as a globally trusted and technologically advanced partner for the semiconductor industry. Our primary goal is to consistently meet and exceed the stringent quality and purity standards demanded by this sector. We are committed to scaling our capacities in alignment with global market requirements, investing in advanced R&D, and continuously enhancing our material performance to support future technology nodes. By aligning closely with semiconductor roadmaps, GFL aims to play a pivotal role in the industry's evolving materials ecosystem. 

What role do sustainability and corporate social responsibility play in your company’s strategy regarding fluoropolymers? 

Sustainability and corporate social responsibility are integral to GFL’s long-term strategy, especially within the fluoropolymer business. We have a dedicated ESG team that oversees all aspects of environmental stewardship, corporate governance, and community engagement. Our approach goes beyond compliance — we actively embed sustainability into product development, operations, and stakeholder relationships. GFL publishes an Integrated Annual Report along with a Business Responsibility and Sustainability Report (BRSR) in line with SEBI guidelines, transparently outlining our ESG initiatives and performance. This structured focus ensures that our growth in high-tech sectors like fluoropolymers is both responsible and future-ready. 

What is the long term vision of the company and how do your efforts align with it?  

At GFL, we remain deeply committed to advancing the fluoropolymer business with a clear focus on sustainability, innovation, and global relevance. As the industry evolves rapidly, driven by breakthroughs in semiconductors, clean energy, and advanced manufacturing, we are positioning ourselves not just as a supplier, but as a strategic, future-ready partner. Our efforts are anchored in long-term thinking, responsible practices, and a strong belief in building value for our customers, stakeholders, and the environment.