The shifting semiconductor value chain has emphasised regional chip production in an effort to move away from dependence on products sourced from Taiwan, a move that could potentially alter raw material sourcing requirements amid geopolitical tensions and regulations.

After a challenging year, Intel announced plans to shift 3nm technology production to Ireland, stating the decision in its 2024 annual report. The move follows delays in chip development, manufacturing difficulties, and intensified competition from firms with advanced process technologies and innovative designs.

Such firms include Taiwan Semiconductor Manufacturing Company (TSMC), which officially commenced 2nm production on 31 March 2025, 27 months after starting 3nm production in December 2022, from which TSMC generated revenue in Q3 2023. The company is also preparing for trial production of 1.4nm chips. In 2024, TSMC launched large-scale 4nm production at its Arizona, USA, facilities, established in 2021. A second fab in Arizona is set to produce 3nm chips by 2028.

The shift in several advanced fabrication facilities from Asia Pacific, mainly Taiwan and South Korea, to Western regions, including Ireland and the USA, may impact raw material production and sourcing amid rising geopolitical tensions.

Following China’s announcement of export restrictions on gallium and germanium, businesses have started investigating ways to secure these materials from non-Chinese sources, focusing not only on material origins but also on pricing. Concerns around procuring gallium, largely under China’s control, are now driving interest in exploration beyond Chinese borders. For example, Greece’s METLEN Energy & Metals intends to construct a gallium circuit at its aluminium smelter, while Rio Tinto is evaluating comparable initiatives in Canada.

Furthermore, Teck Resources’ Red Dog mine in Alaska is believed to supply germanium to Canada and the USA, and Nyrstar’s Tennessee zinc mines could potentially recover the metal for domestic use.