Do China’s export curbs on tungsten threaten Japan’s AI chip supply chain?

Two Japanese companies may cease production of hexafluoride tungsten gas, a vital material for chip manufacturing, starting next month. This decision comes amid tightening export restrictions from Beijing, which have led to a price increase of over 200% year-on-year. This gas is essential for developing precise communications within advanced chips. Market data indicates that rising demand for chips, coupled with supply chain bottlenecks, has significantly contributed to this price surge. Hexafluoride tungsten gas is a critical component in semiconductor manufacturing, making it pivotal for artificial intelligence technology.