![](https://i.imgur.com/CLvY2jA.png")
08-10-2021, 08:27 PM
https://www.straitstimes.com/business/ec...ld-economy
Silicon's 300% surge throws another price shock at world economy
The shortage in silicon metal, sparked by a production cut in China, has sent prices up 300 per cent in less than two months. It is the latest in a litany of disruptions, from snarled supply chains to a power crunch, that is creating a destructive mix for companies and consumers.
The silicon issue also captures how the global energy crisis is cascading through economies in multiple ways. The slashing of output in China, far and away the world's biggest silicon producer, is the result of efforts to reduce power consumption.....
For many industries, it is impossible to avoid the fallout.
Silicon, which makes up 28 per cent of the earth's crust by weight, is one of mankind's most diverse building blocks. It is used in everything from computer chips and concrete, to glass and car parts. It can be purified into the ultra-conductive material that helps convert sunlight into electricity in solar panels. And it is the raw material for silicone - a water- and heat-resistant compound used widely in medical implants, caulk, deodorants, oven mitts and more.
The knock-on consequences are particularly alarming for automakers, where silicon is alloyed with aluminium to make engine blocks and other parts, as well as chemical manufacturers who turn the metal into silicone-based products.
Silicon's 300% surge throws another price shock at world economy
The shortage in silicon metal, sparked by a production cut in China, has sent prices up 300 per cent in less than two months. It is the latest in a litany of disruptions, from snarled supply chains to a power crunch, that is creating a destructive mix for companies and consumers.
The silicon issue also captures how the global energy crisis is cascading through economies in multiple ways. The slashing of output in China, far and away the world's biggest silicon producer, is the result of efforts to reduce power consumption.....
For many industries, it is impossible to avoid the fallout.
Silicon, which makes up 28 per cent of the earth's crust by weight, is one of mankind's most diverse building blocks. It is used in everything from computer chips and concrete, to glass and car parts. It can be purified into the ultra-conductive material that helps convert sunlight into electricity in solar panels. And it is the raw material for silicone - a water- and heat-resistant compound used widely in medical implants, caulk, deodorants, oven mitts and more.
The knock-on consequences are particularly alarming for automakers, where silicon is alloyed with aluminium to make engine blocks and other parts, as well as chemical manufacturers who turn the metal into silicone-based products.
