TECHCET— the electronic materials advisory firm providing supply-chain and market trend analysis – has identified a potential strain on US semiconductor manufacturing capability as Chinese export restrictions on key materials have been announced. Most recently, China announced restrictions of antimony, a key mineral required for chips used in defense equipment. This follows a series of other export controls enacted by China in 2023, most notably on graphite, germanium, gallium, and other rare earths.
These materials have all been identified as critical inputs for chips required in the US defense and the semiconductor industry. Despite growing demand for these materials, most are still primarily produced overseas and imported into the US. For example, most of the domestic antimony demand is imported from outside global sources, with 63% coming from China. Similarly for other materials falling under these export controls, “the US relies strongly on imports, ranging from >50% for germanium and >95% for rare earth elements,” stated Michel Walden, Sr. Director at TECHCET, “while the country is completely reliant on gallium imports.” The US is dependent on China for the majority of these imports.
TECHCET is actively monitoring the impacts of these export controls and other geopolitical factors on the global semiconductor supply chain. As of now, the effects have yet to be fully comprehended, but they are obviously of significant concern. Additionally, wafer starts for semiconductor device production are expected to continue rising at a compound annual growth rate (CAGR) of 5% from 2023 – 2028, requiring increased material production. Without a reliable supply of these and other vital materials, the industry will see shortages and likely experience logistic complications.
TECHCET specializes in market research information for the semiconductor materials supply chain. For more information, contact us or visit https://techcet.com/