Semiconductor Materials Suppliers

The global semiconductor industry depends on a complex supply chain of ultra-high-purity materials, specialty chemicals, and advanced substrates that most people outside the industry have never heard of. Gallium, germanium, silicon carbide, high-purity quartz, indium, tantalum, tungsten, and dozens of other materials are essential inputs for manufacturing the chips that power everything from smartphones and data centers to military systems and electric vehicles. The companies that produce these materials operate in niche markets characterized by extreme purity requirements, limited competition, and significant geopolitical exposure, particularly to China, which dominates production of several key semiconductor materials.

Gallium and Germanium Producers

Gallium and germanium rocketed into the geopolitical spotlight in July 2023 when China announced export controls on both materials, widely interpreted as retaliation for Western semiconductor export restrictions. China produces approximately 80 percent of the world's primary gallium, primarily as a byproduct of aluminium refining, and roughly 60 percent of refined germanium, extracted as a byproduct of zinc processing. Major Chinese producers include Chinalco (Aluminium Corporation of China) for gallium and Yunnan Germanium for refined germanium products. Outside China, gallium recovery capacity exists at aluminium smelters operated by companies including Rio Tinto, Norsk Hydro, and UC Rusal, though much of this potential capacity has been mothballed due to historically low prices and limited economic incentive to invest in recovery infrastructure.

Germanium production outside China is concentrated at Umicore in Belgium, which recovers germanium from zinc residues and recycled materials, and Teck Resources in Canada, which produces germanium concentrates from its Trail smelter in British Columbia. Indium Corporation in the United States processes and supplies germanium and indium products to semiconductor, photovoltaic, and fiber optics customers. The Chinese export controls have accelerated efforts to develop alternative gallium and germanium supply, including recovery from aluminium production waste streams and coal fly ash, but building commercially viable capacity takes years.

Silicon Carbide Substrate Producers

Silicon carbide (SiC) has emerged as a transformative material for power semiconductors, enabling more efficient electric vehicle inverters, fast chargers, renewable energy converters, and industrial motor drives. Wolfspeed (formerly Cree), headquartered in Durham, North Carolina, is the world's largest producer of SiC substrates and epitaxial wafers, operating fabrication facilities in North Carolina and expanding with a massive new facility in Siler City, North Carolina, supported by over $2 billion in public incentives. Coherent (formerly II-VI Incorporated) produces SiC substrates at facilities in the United States and Europe, serving automotive and industrial power electronics markets.

SICC Semiconductor, TanKeBlue Semiconductor, and CENGOL in China have rapidly expanded SiC substrate production capacity, challenging the dominance of Western producers. STMicroelectronics, Infineon Technologies, and onsemi are major SiC device manufacturers that are also investing in captive substrate production to reduce dependence on external suppliers. Rohm Semiconductor in Japan produces SiC devices and substrates through its subsidiary SiCrystal. The SiC market is experiencing a capacity arms race as automakers demand increasing volumes for next-generation EV powertrains, and governments view domestic SiC production as strategically important for both economic competitiveness and defense applications.

High-Purity Quartz Suppliers

High-purity quartz is an essential input for manufacturing the quartz crucibles used in silicon crystal growth, the foundational process for producing silicon wafers. The semiconductor and solar industries depend on quartz with extremely low levels of metallic impurities. The Norwegian company Quartz Corp (a joint venture between Imerys and Norsk Mineral) and The Quartz Corp's competitor Sibelco produce high-purity quartz from deposits in Spruce Pine, North Carolina, which contains some of the purest quartz deposits on Earth. Momentive Performance Materials and Heraeus also produce high-purity quartz products for semiconductor applications. The extreme geological rarity of semiconductor-grade quartz deposits and the concentration of mining in a single region of North Carolina represent an underappreciated supply chain vulnerability for the global semiconductor industry.

Specialty Gas and Chemical Suppliers

Semiconductor fabrication requires dozens of ultra-high-purity specialty gases and chemicals, including neon, argon, krypton, xenon, hydrogen fluoride, phosphine, arsine, and silane. Major suppliers include Air Liquide and Linde, which operate massive industrial gas plants serving semiconductor fabs worldwide. SK Specialty in South Korea and Kanto Denka Kogyo in Japan produce specialty gases for domestic chip manufacturers. The 2022 Russia-Ukraine conflict highlighted semiconductor supply chain fragility when it disrupted neon gas supply from Ukrainian purification plants that had supplied roughly half of the world's semiconductor-grade neon. This disruption accelerated diversification efforts, with new neon purification capacity being built in the United States, South Korea, and Japan.

Indium, Tantalum, and Other Specialty Material Suppliers

A range of other specialty materials serves the semiconductor industry. Indium tin oxide (ITO) sputtering targets, essential for flat panel displays and touchscreens, are produced by companies including JX Nippon Mining and Metals, Umicore, and Vital Materials. Tantalum, used in capacitors and barrier layers in semiconductor manufacturing, is produced by Global Advanced Metals (Australia/USA), KEMET (a Yageo subsidiary), and H.C. Starck (now Masan High-Tech Materials). Tungsten, used for interconnects in advanced logic chips, is refined by Xiamen Tungsten, China Molybdenum, and Wolfram Bergbau und Hutten in Austria. For a detailed look at how these materials are used in chip manufacturing, see compound semiconductors.

Supply Security and Geopolitical Outlook

The semiconductor materials supply chain faces escalating geopolitical risk as the U.S.-China technology competition intensifies. China's export controls on gallium, germanium, and antimony, combined with Western restrictions on semiconductor equipment and chip exports to China, have created a fragmented landscape where both sides are racing to achieve self-sufficiency in critical inputs. The CHIPS and Science Act in the United States, the European Chips Act, and Japan's semiconductor strategy all include provisions for securing access to critical semiconductor materials. Companies that can supply semiconductor-grade materials from geopolitically secure sources are positioned to benefit from this strategic realignment. For the broader context of export controls and risk in the semiconductor supply chain, see our applications section.