Tech Giants Seek Alternatives as Germanium Prices Remain High Across the Globe

In the week ending October 20, the price of Germanium remains on a rising trend amidst a lack of supply in warehouses across the globe, coupled with the hike in demand from the downstream chip manufacturing industries. The major market players across the globe are anticipating the disruption in the supply chain to be resolved by diversification and shifting dependency from the Chinese market to some new source of Germanium Metal. The rising demand for chips from the global chip and electric vehicle manufacturers keeps the price of Germanium on a higher edge.

In a bid to strengthen the global downstream chip industry, key market players are actively exploring diversification options amidst fluctuating supplies of Germanium on the global stage. Most Germanium production is concentrated in Taiwan, primarily under the umbrella of Taiwan Semiconductor Manufacturing Company Limited (TSMC). Notably, major tech giants in the chip and automotive industries, including Apple, Amazon, Google, and Tesla, heavily rely on TSMC for their semiconductor needs. However, TSMC is currently grappling with a shortage of technical personnel, resulting in a one-year delay in their 2nm chip production. In response to this workforce challenge, Intel has launched a certification program in Ohio, aiming to address the shortage of technicians by providing affordable access to education. This initiative is expected to help revive the industry, reduce the labor deficit in domestic sectors, and drive up the demand for Germanium in the global market.

Moreover, alternative sources of Germanium have emerged in regions such as Congo, Australia, and Belgium. Congo, a significant global source of cobalt and a leading copper producer, is demonstrating ambitions to expand its role in the Germanium supply chain with the introduction of its STL operation. A state-of-the-art facility recently established in the Democratic Republic of Congo is set to contribute to 30% of the world's Germanium production. This move has the potential to alleviate China's dominance in the market, as the Asian nation had restricted its Germanium exports in August amid ongoing trade tensions with the US and Europe. The hydrometallurgical plant in the southeastern part of Congo was inaugurated on October 4 by President Felix Tshisekedi. The Societe Congolaise pour le traitement du Terril de Lubumbashi (STL), a unit of the state-owned miner Gecamines, is responsible for managing operations in the mines. Furthermore, additional sources of Germanium are emerging, including Canada's Teck Resources, one of the world's largest producers of Germanium Metal, and the American company Indium Corporation, a prominent global manufacturer of Germanium and its alloys. Canada's 5NPlus and Belgium's Umicore have also entered the arena by producing essential components such as Germanium Metal.

According to ChemAnalyst, the price of Germanium is anticipated to increase further in the upcoming months as the demand will remain high throughout the last quarter of 2023. Huawei's New 5G Phone production and electric vehicle manufacturing from Tesla and China's manufacturer will keep the market trend firm for Germanium in the Global market.