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Which Metals are Used in Microchips?
Rare Earth Metals are the Backbone of Microchips.
At the heart of modern electronics is the semiconductor. A semiconductor is a silicon wafer, but also germanium or compound mixes like gallium arsenide. These strategic metals can conduct electricity under some conditions but not others. This property allows it to function as a switch, enabling billions of transistors on a single chip to turn current flow on and off in fractions of a second.
The secret lies in “doping,” where tiny amounts of impurities (for example, phosphorus or boron) are introduced to alter the conductivity. This doping process must be performed in clean labs.
Even microscopic dust can ruin an entire batch of wafers, each wafer set to hold thousands of individual chips.
Pre-Semiconductor Computers
Long before the microchip transformed our phones, cars, and factories, early computers relied on vacuum tubes and mechanical relays to perform calculations. In the 1940s, machines like the ENIAC filled entire rooms and contained around 18,000 vacuum tubes.
- Semiconductor Supply Chain Metals
The Evolution of Semiconductors
Transistors replaced vacuum tubes in the late 1950s, drastically reducing heat generation and energy needs.
By the 1970s, integrated circuits brought together multiple transistors on a small slice of silicon, enabling the creation of microprocessors.
As fabrication techniques improved, the industry shifted from 6-inch to 8-inch wafers, then to 12-inch wafers, allowing more chips per wafer and driving costs down.
Today, advanced semiconductor fabrication plants (often called “fabs”) use processes measured in nanometers to print billions of transistors on each chip.
Globally, over 1.2 trillion semiconductors are manufactured each year.
Materials Used in Current Semiconductors
- Often combined with arsenic (GaAs) or nitrogen (GaN), gallium-based semiconductors excel in high-frequency applications such as 5G, satellite communications, and radar systems. For example, gallium nitride can handle higher voltages and temperatures than silicon, making it ideal for power electronics and fast-charging systems. Globally, gallium production was estimated around 430 metric tons per year in 2024, and a sizable share goes directly into semiconductor manufacturing.
- Before silicon took center stage, germanium was a common transistor material in the 1950s. Today, it is seeing renewed interest in advanced chip designs and fiber-optic systems. When used in certain transistors or solar cells, germanium offers higher carrier mobility than silicon alone. Annual worldwide germanium production is relatively small—hovering between 130 and 150 metric tons—but it remains vital for niche high-speed and photonic applications.
- As part of compound semiconductors like indium phosphide (InP), indium enables rapid data transfer in optical networks. It is crucial for lasers and detectors in fiber-optic communication, where extreme bandwidth is needed. While each indium phosphide wafer may only contain a fraction of a gram of indium, the aggregate usage across networking infrastructure, smartphone components, and emerging photonic chips reaches hundreds of tons per year.
Copper interconnects, tungsten contacts, palladium, and even platinum can appear in various layers of advanced chips. Some advanced logic chips also incorporate cobalt or ruthenium in thin films to improve electromigration resistance. Each element is carefully chosen for specific electrical, thermal, or reliability benefits.
Investing in rare earth metals is a sophisticated move that comes with high risk and high reward. A suitable investor would be someone who can buy least $50,000 upon the initial purchase, is savvy, HNW, and understands the associated risks.
A Shifting Landscape: Export Controls and Alternatives
As technology races forward, the supply chain for critical metals has come into sharper focus. Certain regions dominate the mining or refining of these resources. For instance, a single country might account for over half the world’s refined gallium output, making any export controls or trade disputes a global concern. Meanwhile, major semiconductor manufacturers in East Asia, North America, and Europe scramble to ensure stable supplies of vital metals. Disruptions can reverberate across supply chains, affecting everything from consumer electronics to sophisticated defense systems.
In response, manufacturers and governments alike are pouring investment into new mines, recycling initiatives, and alternative materials. Gallium nitride (GaN) is replacing silicon in some power applications, while silicon carbide (SiC) is emerging in electric vehicle inverters due to its higher efficiency at elevated temperatures. Researchers are also experimenting with layered two-dimensional materials that offer faster switching speeds. These efforts aim to future-proof the industry against shortages and performance plateaus.
Quantifying Metal Use per Chip
While it can vary significantly by device type, some high-performance logic chips may contain milligrams of exotic metals like gallium or indium. For example, a single 8-inch gallium arsenide wafer might contain around 10–15 grams of gallium. When multiplied by thousands of wafers per month in just one fab, the numbers become staggering. The cumulative annual production of gallium needed to supply the entire industry can break into hundreds of metric tons. Even a small uptick in demand for gallium-based 5G components or advanced power electronics can tighten global supplies.
Looking Ahead
Innovation in semiconductors shows no signs of slowing. As more devices become “smart” and connected, manufacturers are forced to push performance boundaries. The question is whether supply lines can keep pace with skyrocketing demand, especially for critical metals. Storage, refining, and recycling strategies are being refined to ensure a continuous flow of materials. Meanwhile, new fabrication methods and alternative compounds, such as diamond-like carbon layers or quantum dot structures, are under intense investigation in research labs worldwide.
The semiconductor supply chain is complex and inherently global. At the core of it are rare and strategic metals such as gallium, germanium, and indium, that help each chip function at the cutting edge of technology. As trillions of chips roll off production lines each year, the quest to secure these metals will shape future innovation, influencing everything from everyday smartphones to the most advanced supercomputers on the planet.
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