Material shortages in the semiconductor industry: What alternatives are there?
Global demand for semiconductors is rising rapidly, while the availability of critical raw materials is increasingly coming under pressure. Geopolitical tensions, disruptions in the supply chains, and the shift toward more sustainable production processes are forcing companies to find new ways to secure the supply of materials. What role do new materials, AI-supported simulations and sustainable strategies play in this?
AI-supported simulations: efficiency through digital twins
The semiconductor industry is increasingly relying on the use of artificial intelligence (AI) in material development and production. With the help of AI-supported simulations, companies can run through various material options digitally without having to produce expensive and time-consuming physical prototypes. For example, the use of new interconnect materials such as cobalt, nickel or molybdenum is tested virtually to evaluate their electrical properties and thermal stability. Digital twins are also used in production planning: they simulate processes in real time and help to identify and avoid bottlenecks at an early stage.
Sustainability in material selection: focus on the circular economy
Sustainability has long been more than just a marketing term. The semiconductor industry is required to evaluate materials not only from a technical but also from an ecological and social perspective. The circular economy plays a key role here: Recycling and recovering valuable raw materials from disused appliances can conserve resources and reduce dependence on primary materials. For example, rare earth magnets are increasingly being obtained from recycled electronic components, which improves both the carbon footprint and supply security.
Material substitution: silicon carbide as a success story
Silicon (Si) has long been the material of choice in semiconductor production. However, with the growing demand for more efficient and more powerful chips, the limitations of silicon became increasingly clear. Silicon carbide (SiC) has established itself here as a high-performance alternative material, especially in power electronics for electric vehicles. SiC enables higher switching speeds, lower heat losses and more compact designs, which noticeably improves the energy efficiency of electric drives. Large European companies such as Infineon are investing heavily in expanding their SiC capacities in order to meet the growing demand in the automotive industry.
Challenges in material substitution
However, switching to new materials also entails challenges. Producing SiC semiconductors is significantly more energy-intensive than producing silicon chips, which affects both production costs and the ecological footprint. In addition, production facilities have to be adapted, new suppliers developed, and quality standards redefined. Similar challenges await the industry with the potential use of gallium oxide, which appears promising for high-voltage applications but is still in the development phase.
On the path to more resilient supply chains
The shortage of materials in the semiconductor industry will remain a dominant topic in the coming years. However, the combination of new technologies, sustainable strategies, and innovative material alternatives can strengthen supply security in the long term. The use of AI in materials research, the establishment of closed recycling loops, and the targeted funding of future materials such as SiC or gallium oxide could help Europe become less dependent on global supply chains.