Lower silicon production in China may increase chip production costs

Posted:
in General Discussion
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.

The cuts are caused by China attempting to reduce power consumption in the country, a byproduct of which is a reduction of output from suppliers, including those working on silicon.

Yunnan province in China is the second-biggest producer in the country, was ordered to cut production by 90% below August levels from September until December, prompting sudden rises. While it was previously between 8,000 yuan and 17,000 yuan per ton ($1,200 to $2,400), prices are now up to 67,300 yuan per ton.

The scarce material has already hit the solar industry, with solar-grade polysilicon jumping 13% in price on Wednesday, its highest price since 2011.

The price of silicon is anticipated to remain high for a prolonged period of time, with Shanghai Metals Market analyst Yang Xiaoting expecting high levels until summer 2022. At that time, more production availability will open up for the second half of the year.

Until then, it is likely that the extra cost to buy silicon could impact the production and eventual price consumers pay for goods.

The reduced silicon supply may also hinder the ongoing global chip shortage, which is deeply impacting tech producers. While some believe Apple has escaped the majority of issues associated with the crisis so far, some analysts believe Apple is starting to feel the pinch.

Read on AppleInsider

Comments

  • Reply 1 of 17
    There is a confusion in this article. Silicon is not metal. The problem metal is copper. 
    nadriel
  • Reply 2 of 17
    There is a confusion in this article. Silicon is not metal. The problem metal is copper. 
    Silicon is, in fact, a metal. Albeit, one that has some non-metal properties.
    elijahg
  • Reply 3 of 17
    KTRKTR Posts: 280member
    Still, with that said.  Some might prioritize apple 
  • Reply 4 of 17
    KTRKTR Posts: 280member
    I forgot to mention, the trade war with China isn’t going up well.  And they can punish ones that rely on them.

    williamlondon
  • Reply 5 of 17
    netroxnetrox Posts: 1,482member
    Bosa said:
    Silicon is cheaper than dirt, stop causing unneeded panic.

    Apple suppliers will get the silicon for Apple chips, rain or shine 
    You clearly have no idea how expensive it is to produce pure silicon for microprocessors.
    edited October 2021 napoleon_phoneapartviclauyycWgkruegernadriel
  • Reply 6 of 17
    This is the price to pay when China is mad at Australia. 

    I will not surprise if thousands of people freeze to death in this winter in China. But CCP don’t care, of course. 
    williamlondon
  • Reply 7 of 17
    viclauyyc said:
    This is the price to pay when China is mad at Australia. 

    I will not surprise if thousands of people freeze to death in this winter in China. But CCP don’t care, of course. 
    At least they can breathe fresh air, in the dark that is…..
  • Reply 8 of 17
    There is a confusion in this article. Silicon is not metal. The problem metal is copper. 
    Silicon is, in fact, a metal. Albeit, one that has some non-metal properties.
    It is a metalloid, not a metal. Metalloids have properties that "are in between" of metals and non-metals, as you said.
  • Reply 9 of 17
    GeorgeBMacGeorgeBMac Posts: 11,421member
    viclauyyc said:
    ...

    I will not surprise if thousands of people freeze to death in this winter in China. But CCP don’t care, of course. 

    LOL.... That's why they cut back on production:   to insure their people have heat and energy during the energy crisis in that region.  They are cutting back on industry (that they highly value) to assure the health & safety of their people who they value even higher than industry.

    The curious part is:  what is causing this energy shortage in that region?
    England has one but we know why:  A lack of workers from the EU needed to transport it.  But in China it is so far unexplained.
    edited October 2021
  • Reply 10 of 17
    gatorguygatorguy Posts: 24,603member
    viclauyyc said:
    ...

    I will not surprise if thousands of people freeze to death in this winter in China. But CCP don’t care, of course. 

    LOL.... That's why they cut back on production:   to insure their people have heat and energy during the energy crisis in that region.  They are cutting back on industry (that they highly value) to assure the health & safety of their people who they value even higher than industry.

    The curious part is:  what is causing this energy shortage in that region?
    England has one but we know why:  A lack of workers from the EU needed to transport it.  But in China it is so far unexplained.
    The Global Times wouldn't report it as it doesn't portray Pres. Xi in a positive light, so if that's your source of news you won't find it. But if you'll read some Western news sources it's not an unexplained mystery. 
    https://www.bloomberg.com/news/articles/2021-10-02/china-s-energy-crisis-highlights-weaknesses-in-xi-s-power-plans
    edited October 2021
  • Reply 11 of 17
    viclauyyc said:
    ...

    I will not surprise if thousands of people freeze to death in this winter in China. But CCP don’t care, of course. 

    LOL.... That's why they cut back on production:   to insure their people have heat and energy during the energy crisis in that region.  They are cutting back on industry (that they highly value) to assure the health & safety of their people who they value even higher than industry.

    The curious part is:  what is causing this energy shortage in that region?
    England has one but we know why:  A lack of workers from the EU needed to transport it.  But in China it is so far unexplained.
    It is due to China is engaged in a trade war with Australia. The reason is Australia leaders joined the five eye coalition, its mission is to sabotage China. 
  • Reply 12 of 17
    GeorgeBMacGeorgeBMac Posts: 11,421member
    gatorguy said:
    viclauyyc said:
    ...

    I will not surprise if thousands of people freeze to death in this winter in China. But CCP don’t care, of course. 

    LOL.... That's why they cut back on production:   to insure their people have heat and energy during the energy crisis in that region.  They are cutting back on industry (that they highly value) to assure the health & safety of their people who they value even higher than industry.

    The curious part is:  what is causing this energy shortage in that region?
    England has one but we know why:  A lack of workers from the EU needed to transport it.  But in China it is so far unexplained.
    The Global Times wouldn't report it as it doesn't portray Pres. Xi in a positive light, so if that's your source of news you won't find it. But if you'll read some Western news sources it's not an unexplained mystery. 
    ....

    Nice try!  But you just did another face plant.

    None of my information came from anything but impartial western news outlets!

    Aren't you feeling stupid continuously making crazy claims that prove to be untrue?
  • Reply 13 of 17
    GeorgeBMacGeorgeBMac Posts: 11,421member
    viclauyyc said:
    ...

    I will not surprise if thousands of people freeze to death in this winter in China. But CCP don’t care, of course. 

    LOL.... That's why they cut back on production:   to insure their people have heat and energy during the energy crisis in that region.  They are cutting back on industry (that they highly value) to assure the health & safety of their people who they value even higher than industry.

    The curious part is:  what is causing this energy shortage in that region?
    England has one but we know why:  A lack of workers from the EU needed to transport it.  But in China it is so far unexplained.
    It is due to China is engaged in a trade war with Australia. The reason is Australia leaders joined the five eye coalition, its mission is to sabotage China. 

    That makes sense.
    But I would add that it started when Australia joined Trump's smear campaign against China -- then acted all surprised and butt hurt that China responded.
  • Reply 14 of 17
    gatorguy said:
    viclauyyc said:
    ...

    I will not surprise if thousands of people freeze to death in this winter in China. But CCP don’t care, of course. 

    LOL.... That's why they cut back on production:   to insure their people have heat and energy during the energy crisis in that region.  They are cutting back on industry (that they highly value) to assure the health & safety of their people who they value even higher than industry.

    The curious part is:  what is causing this energy shortage in that region?
    England has one but we know why:  A lack of workers from the EU needed to transport it.  But in China it is so far unexplained.
    The Global Times wouldn't report it as it doesn't portray Pres. Xi in a positive light, so if that's your source of news you won't find it. But if you'll read some Western news sources it's not an unexplained mystery. 
    ....

    Nice try!  But you just did another face plant.

    None of my information came from anything but impartial western news outlets!

    Aren't you feeling stupid continuously making crazy claims that prove to be untrue?
    Can you please share those links, so that we can read and be better informed as well?
    williamlondonwatto_cobra
  • Reply 15 of 17
    gatorguygatorguy Posts: 24,603member
    gatorguy said:
    viclauyyc said:
    ...

    I will not surprise if thousands of people freeze to death in this winter in China. But CCP don’t care, of course. 

    LOL.... That's why they cut back on production:   to insure their people have heat and energy during the energy crisis in that region.  They are cutting back on industry (that they highly value) to assure the health & safety of their people who they value even higher than industry.

    The curious part is:  what is causing this energy shortage in that region?
    England has one but we know why:  A lack of workers from the EU needed to transport it.  But in China it is so far unexplained.
    The Global Times wouldn't report it as it doesn't portray Pres. Xi in a positive light, so if that's your source of news you won't find it. But if you'll read some Western news sources it's not an unexplained mystery. 
    ....

    Nice try!  But you just did another face plant.

    None of my information came from anything but impartial western news outlets!

    Aren't you feeling stupid continuously making crazy claims that prove to be untrue?
    I did not accuse you of reading any particular news source. I pointed out a simple fact, there are things officially-sanctioned Chinese outlets don't report on as a matter of policy. In any event it is not a mystery why there's been recent power issues in China, which you could have found for yourself searching Western news outlets. 

    Personally I wouldn't ask you if you were feeling stupid for not being able to find it, what sources you were using for researching it (obviously not good choices), and no idea why you thought it wasn't explained. You on the other hand.... 
    edited October 2021 muthuk_vanalingam
  • Reply 16 of 17
    GeorgeBMacGeorgeBMac Posts: 11,421member
    gatorguy said:
    viclauyyc said:
    ...

    I will not surprise if thousands of people freeze to death in this winter in China. But CCP don’t care, of course. 

    LOL.... That's why they cut back on production:   to insure their people have heat and energy during the energy crisis in that region.  They are cutting back on industry (that they highly value) to assure the health & safety of their people who they value even higher than industry.

    The curious part is:  what is causing this energy shortage in that region?
    England has one but we know why:  A lack of workers from the EU needed to transport it.  But in China it is so far unexplained.
    The Global Times wouldn't report it as it doesn't portray Pres. Xi in a positive light, so if that's your source of news you won't find it. But if you'll read some Western news sources it's not an unexplained mystery. 
    ....

    Nice try!  But you just did another face plant.

    None of my information came from anything but impartial western news outlets!

    Aren't you feeling stupid continuously making crazy claims that prove to be untrue?
    Can you please share those links, so that we can read and be better informed as well?

    Your not even very good at trolling.   You keep saying the same stupid things.


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