The German car industry faces serious semiconductor supply restrictions. This has prompted national authorities to seek to increase domestic production capacity. The lack of semiconductors has compelled Daimler to place tens of thousands of employees on temporary leave. In the meantime, Volkswagen recorded enormous losses for the first quarter of 2021.
Germanium is an essential element in electronics and is present in trace amounts in the earth's crust. However, the concentration is insufficient for direct extraction. Instead, zinc is extracted through distillation from zinc ores. The economics of zinc mining, however, have made it challenging to generate huge quantities of the element. This scarcity has compelled companies to seek alternative sources of the metal. A current attempt involves the extraction of germanium from coal ash.
According to reports, China is purchasing about a quarter of the global production of the metal. The metal is utilized in semiconductors, optical fibers, and other electrical applications. China's stockpiling of the metal is anticipated to maintain a floor for spot prices. In recent weeks, the price per kilogram (kg) of the metal has been stable at approximately $1,840. This is close to the 17-year high hit in June of last year. Even though the lack of Germanium will have an effect on the market, it is not likely to have a big effect on prices in the near future.
Semiconductor manufacturing is being impacted by a germanium scarcity. The metal is one of the rarest and most expensive substances on Earth. The United States has only approximately 2,500 tons of the metal's reserves, while China leads the globe in annual production with about 85,000 tons. Silicon is the second most common element on Earth, and it makes up almost a quarter of the crust.
The global Germanium supply is currently below demand, necessitating the development of alternate sources. This substance is utilized in both electrical components, such as semiconductors and fiber optics, and medicinal devices. In the global market, the shortfall in other nations may have a limited impact for a brief period of time.
The price of germanium has skyrocketed after China ceased mining operations for environmental reasons. The price increase is about a quarter of a percent.The metal is employed in semiconductors and optical fiber networks. The expected supply of the metal in 2012 is 128 tonnes, with China being the major producer, with 90 tonnes produced in 2011.
Already, the global shortage of the semiconductor germanium is impacting the production of electric vehicles. Ford Motor Company has informed customers that deliveries of its Mach-E Mustang model will be delayed for up to six weeks. This is a concern since the demand for electric vehicles is growing considerably faster than the supply. No one knows for sure how long the chip shortage will last, but automakers have already changed how they make cars.
In a world where silicon chips are becoming increasingly expensive, germanium is increasingly used as an alternative semiconductor. However, as the global demand for this rare metal increases, the supply of this natural element may run out by 2021. The deficiency is a significant worry for the semiconductor industry. The manufacturing of these gadgets is extraordinarily intricate and requires skilled precision and knowledge. In the first phase, a semiconductor "ingot" is heated into a wafer-thin shape, which is then subjected to a photoresistor masking process that applies very complicated circuits to the wafer. This can take several months.