In recent years, the global demand for semiconductors, solar panels, 5G technologies, and emerging markets has surged, leading to an increased demand for silicon raw materials. Silicon is a crucial component in the production of semiconductors and solar panels, and as the demand for these technologies increases, so does the demand for silicon. However, this increase in demand has created supply chain issues and has led to a rise in raw material prices.

The demand for semiconductors has been driven by the growth of emerging markets, especially in the Asia-Pacific region. According to a report by McKinsey, China accounts for 50% of global semiconductor demand. Moreover, the rise of 5G technology and the increasing adoption of electric vehicles have further contributed to the demand for semiconductors.

Similarly, the demand for solar panels has been driven by the growing need for renewable energy sources. Countries like China, India, and the United States have been investing heavily in solar power, leading to a surge in demand for solar panels. The increasing demand for silicon in the production of solar panels has put further pressure on the supply chain.

The largest producers of silicon raw materials by volume are China, Russia, and the United States. However, global instability, including trade tensions and the COVID-19 pandemic, has affected the production and supply of silicon raw materials. This has resulted in a rise in raw material prices, leading to a vast increase in electronic component pricing and delivery schedules.