Critical Minerals in Semiconductors
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Semiconductors depend on a short list of by-product metals, above all gallium, germanium and indium, which are used in compound-semiconductor chips, lasers, infrared optics, fiber-optic networks and displays. China produced 99% of the world's primary low-purity gallium in 2025 and about 70% of its indium, and it is the leading producer of germanium, which makes these markets exposed to Chinese export licensing introduced in 2023 and tightened in 2024 and 2025.
99%
of world primary low-purity gallium production came from China in 2025
73%
of US gallium consumption went into integrated circuits, with 26% in optoelectronic devices
$5,380/kg
European price of germanium metal in October 2025, up from $3,150 in January
Source: USGS, citing Argus Media
Which critical minerals do semiconductors rely on?
Gallium, germanium and indium are the three most exposed, and each is recovered as a by-product of another metal. The table compares them using the US Geological Survey's 2026 data.
| Metal | Role | Production | China controls | US dependence |
|---|---|---|---|---|
| Gallium | Gallium arsenide and gallium nitride wafers for integrated circuits, laser diodes, LEDs, photodetectors and solar cells | China 99% of primary low-purity output; recovered mainly from bauxite processing (USGS) | Licensing from August 2023; ban to the US in December 2024; the ban was lifted for one year in November 2025 | 100% net import reliance; no primary gallium recovered in the US since 1987 |
| Germanium | Fiber-optic glass, infrared optics, solar-cell substrates for satellites, germane gas for chips, radiation detectors | China the leading producer; recovered from zinc ores and coal; global data are limited (USGS) | Licensing from August 2023; ban to the US in December 2024; Chinese germanium metal exports fell to 7,520 kg in January-September 2025 | Net import reliance above 50%; US imports of germanium metal fell 67% in 2025 |
| Indium | Indium tin oxide coatings for flat-panel displays; indium phosphide substrates for 5G fiber-optic networks, lasers and photodetectors | China 70% of production (760 t of 1,100 t refined in 2025); Korea 180 t; Japan 65 t (USGS) | New export restrictions in February 2025; unwrought indium exports fell 72% from September 2024 to September 2025 | 100% net import reliance; average US price $390 per kilogram in 2025, up 11% |
USGS estimates for 2025. The USGS notes that germanium production data are limited and difficult to verify, so the table states only what it reports.
What did China's export controls change?
China's controls reduced supply to the United States and raised prices outside China. US imports of gallium metal were estimated at more than double the 2024 level in 2025, with the average import value up about 30% to $580 per kilogram, which suggests buyers built stocks ahead of restrictions. Imports of germanium metal fell 67% to 7,000 kg, and Europe's price for 99.999% germanium metal rose from $3,150 to $5,380 per kilogram between January and October 2025. The ban on gallium exports to the United States was lifted for one year in November 2025. The dated sequence is on the export controls page.
Where is non-Chinese supply being built?
Several projects aim to recover these metals outside China, but none is yet at scale. The USGS reports that the US Department of Energy announced up to $6 million for research to recover gallium from alumina refining or zinc smelting, and that the Department of War granted $29.9 million under the Defense Production Act to a US company building a demonstration facility in Louisiana to recover gallium and scandium from industrial waste. In August 2025 the Department of Energy announced investment initiatives totalling $1 billion that include germanium refining and by-product recovery. A planned Alcoa-Sojitz gallium project in Western Australia is expected to deliver around 10% of world gallium supply, according to the Minerals Council of Australia. Gallium and germanium are also strategic raw materials in the EU. See the EU strategic list.
Frequently asked questions
Which critical minerals are used in semiconductors?
The critical minerals most used in semiconductors are gallium, germanium and indium, along with silicon. Gallium goes into gallium arsenide and gallium nitride chips and lasers, germanium into infrared optics, fiber-optic glass and solar-cell substrates, and indium into display coatings and indium phosphide devices.
Who produces gallium?
China produces almost all of the world's primary gallium. The USGS reports that China accounted for 99% of worldwide primary low-purity gallium production in 2025, with the remainder from Japan and Russia, and that no primary gallium has been recovered in the United States since 1987.
Why did germanium prices rise in 2025?
Germanium prices rose in 2025 after China banned exports to the United States in December 2024 and tightened licensing. The USGS reports that the European price of germanium metal climbed from $3,150 to $5,380 per kilogram between January and October 2025.
Is the Chinese gallium export ban still in force?
The Chinese ban on gallium exports to the United States was lifted for one year in November 2025, according to the USGS, and the broader licensing system remains. Check the export controls page for the current dates.
Sources
Read on October 12, 2026. Figures on this page come from these documents; where a number is an estimate, the source says so.
