The Middle East conflict is raising concerns over global energy supply and driving sharp increases in semiconductor material costs. And a fresh supply chain problem could be brewing for the tech industry, according to a report in DigiTimes.
Gallium is a critical element used in advanced semiconductor technologies, and recent market data has shown gallium prices have surged dramatically in recent months, reaching $2,100 per kg in early March 2026, more than double the cost in early 2025.
The gallium market is already under pressure from export restrictions and licensing requirements by China, which dominates global production of the metal.
Gallium is a material used in compound semiconductors such as gallium arsenide (GaAs) and gallium nitride (GaN). These are commonly found in RF modules, power electronics, LEDs, and high-efficiency chips used across laptops, networking gear, and data-centre hardware.
image credit: DIGITIMES