Silicon’s 300% surge throws another price shock at world economy, Economy News & Top Stories
SINGAPORE (BLOOMBERG) – A metal made from the second-most abundant element on earth has become scarce, threatening everything from car parts to computer chips and throwing up another hurdle for the 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…