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Compound semiconductor manufacturers have said that prices for key chipmaking metals have doubled and gallium has climbed sharply, as disruptions from the ongoing Middle East conflict pile onto supply constraints already Resulting from China's trade restrictions, DigiTimes announced Friday.
Industry sources told DigiTimes that prices for high-temperature metals — tungsten, tantalum, and molybdenum — used in compound semiconductor equipment have doubled in recent weeks, with some specialty chemical inputs Increasing by up to triple. Gallium, the feedstock for gallium arsenide (GaAs) and gallium nitride (GaN) chips, has also climbed further. Market data indicate that gallium was trading at approximately $2,100 per kilogram in early March 2026, representing a 123% increase since the start of 2025, following China's ban on gallium exports to the United States in late 2024.
The Middle East conflict, meanwhile, has also hit aluminum production after QatarEnergy halted the production of aluminum, which feeds into gallium supply, and helium. Gallium is recovered almost entirely as a byproduct of aluminum refining, and major smelters, including Aluminium Bahrain and Norsk Hydro's Qatalum facility, declared force majeure after gas supplies were suspended, Propelling aluminum to a four-year peak of $3,418 per tonne on the London Metal Exchange. Shortages of indium phosphide substrates, used in high-frequency optical and telecom components, also persist, with DigiTimes sources saying no near-term relief is in sight.
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Samsung and SK Hynix are reportedly keeping a close eye on helium stockpiles following the start of the conflict. Qatar generates over one-third of the world's helium output, as stated by the U.S. Geological Survey, and the element has no viable substitute in semiconductor fabrication, where it’s used in lithography and thermal management. Furthermore, the practical shutdown of the Strait of Hormuz and the extra logistical risk is the final complication for all this.
DigiTimes states that industrial companies have reacted by moving away from just-in-time stock management, developing raw material inventories, and authorizing several vendors. Companies told the publication they will absorb potential losses from price declines later, prioritizing supply security.
GaN and GaAs components appear across a wide range of consumer hardware, including power semiconductors in PC power supplies and laptop chargers, WiFi 7 radio front-ends, and RF chips in routers and networking adapters.
