Lower silicon production in China may increase chip production costs

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content.

A surge in pricing for silicon metal may become a big issue for Apple and other major manufacturers, with production cuts in China shooting up the price of the material by 300% in less than two months.

Silicon is an important part of the technology landscape, being used for chip production as well as in other industries, including glass production and even concrete, as well as silicone products. However, it seems that the supply of the material is getting extremely tight, despite silicon being abundant enough to make up 28% of the earth’s crust.

While issues ranging from higher chip demand and water shortages have impacted device vendors so far, in what is termed the global chip shortage, silicon itself is a growing problem area. In a report by Bloomberg, production cuts in China has forced up the price of the material to triple what it was two months previous.