Author(s): Shubham Rajendra Ekatpure
The semiconductor industry is highly dependent on rare earth elements (REEs) due to their unique properties that enhance the performance of semiconductor devices. REEs, including lanthanides, yttrium, and scandium, are essential in various processes, from producing powerful magnets to improving display technologies and gas sensing capabilities. However, the global supply of REEs is heavily concentrated in China, which accounts for over 90% of production. This concentration poses significant risks for the U.S. semiconductor industry, which relies on imports from China for critical materials. Despite efforts to diversify sources and develop domestic capabilities, the U.S. remains vulnerable due to a lack of processing infrastructure and environmental challenges. This paper explores the current state of the global REE supply chain, focusing on the U.S.’s dependency on foreign imports. Through scenario planning and strategic recommendations, the study offers insights into how the U.S. can strengthen its domestic supply chain and reduce its reliance on foreign REEs, thereby enhancing its competitiveness in the global semiconductor market.
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