China's tungsten curbs threaten Japan's AI chip gas supply

China's export controls on tungsten are crippling Japan's supply of tungsten hexafluoride, a gas essential for making the microscopic interconnects in advanced AI chips (3-7nm nodes). Prices for 99.999% purity gas have tripled year-on-year to over 1,700 yuan ($251) per kg. Japan's tungsten imports from China fell 50% in April alone, and Chinese producers dominate global reserves and output. Tungsten powder, the raw material, accounts for over 60% of the gas's production cost, leaving little room for alternative sourcing.

Now, two major Japanese specialty gas producers—Showa Denko Kanto and Central Glass—plan to suspend production in July as stockpiles run dry. They have alerted Samsung Electronics and DB HiTek about possible supply interruptions. This exposes the extreme vulnerability of the AI chip supply chain: a single choke point (China's tungsten dominance) can halt fabrication of the most advanced processors. Without a diversified supply of precursor materials, even big fabs face costly delays.