A fresh supply chain shock may be brewing for the tech industry, and it could eventually affect the price of PCs, smartphones, and other consumer electronics. According to a new report from DigiTimes, semiconductor manufacturers are facing sharp increases in the cost of key materials used in chip production. The spike is being driven by geopolitical instability and tightening supply chains, particularly for metals used in compound semiconductors.
Verge / ScienceOne metal drawing particular attention is gallium, a critical element used in advanced semiconductor technologies. Market data show gallium prices have surged dramatically in recent months, reaching roughly $2,100 per kilogram in early March 2026, more than doubling from levels seen in early 2025. While the issue lies deep within the semiconductor supply chain, analysts warn that the ripple effects could eventually reach the consumer electronics market.
Why are chip materials suddenly getting
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