Tungsten Supply Constraints May Extend AI Chip Production Bottlenecks, Prices Up 151% YTD

According to SemiAnalysis on June 30, tungsten supply constraints may extend bottlenecks in AI semiconductor production beyond chips and equipment to critical materials themselves. Tungsten is irreplaceable in advanced chip manufacturing due to its high-temperature stability and resistance to electromigration, serving dual roles in both chemical vapor deposition and physical vapor deposition processes.

Tungsten supply is tightening significantly. Japan's key suppliers of tungsten hexafluoride—the primary chemical used in vapor deposition—face rising costs and reduced raw material imports. South Korea's tungsten hexafluoride import prices surged 151% year-to-date, signaling mounting pressure across the semiconductor supply chain as AI demand intensifies.