So What On Earth Is Yttrium?
If you have never heard of yttrium before, you are definitely not alone. It is a rare earth element with a name that sounds like a made up sci fi resource. You say it like it ree uhm. Weird name aside, it just became a very big deal for anyone who cares about gaming PCs, consoles or basically any high end tech.
This year the price of yttrium has exploded. We are talking a jump from around 8 dollars per kilogram at the end of last year to about 126 dollars per kilogram in 2025. That is close to a 1,500 percent surge, mostly because of supply problems rather than some sudden new use for it.
Yttrium shows up in all kinds of advanced gear. It is used in jet engines and medical devices, but the really important bit for gamers and tech fans is its role in making computer chips. With demand for powerful processors at an all time high, anything that messes with chip production is worth paying attention to.
Why Yttrium Matters For Chips And Gaming
When chip makers build high end processors, the environment inside their manufacturing tools gets brutal. There are hot plasmas, chemicals and all sorts of things that could wreck delicate parts. That is where yttrium comes in.
Chip fabs use yttrium oxide films as protective and insulating layers inside their equipment. These coatings do a few key things.
- They protect sensitive surfaces from harsh manufacturing conditions
- They keep equipment running reliably for longer
- They help improve yields so you get more working chips from each batch
In simple terms, yttrium helps factories make more good chips instead of throwing a bunch away. With current demand for advanced processors for AI, gaming, servers and phones, that protective role suddenly matters a lot.
The problem is that yttrium is not evenly spread around the world, either in the ground or in the supply chain. China dominates this space and that is where the trouble starts.
China, Trade Rules And A Growing Chokepoint
China controls an estimated 69 percent of global rare earth mining and it refines almost all of the yttrium that is actually usable. The United States imports nearly all of its yttrium and about 93 percent of that comes directly from China.
Earlier this year China introduced export restrictions on rare earth materials. Companies now need licenses from Beijing before they can ship this stuff out of the country and the approvals that have gone through so far are mostly for small shipments. That instantly tightened supply for the rest of the world.
A recent meeting between US president Donald Trump and Chinese leader Xi Jinping led to a pause on some rare earth limits, but the main controls from April are still in place. So while the political headlines talk about trade truces, the practical reality in factories is that yttrium is still hard to get in large quantities.
Industry insiders are not exactly relaxed about it either. One executive described the severity of the yttrium situation as nine out of ten. Richard Thurston, the CEO of Great Lakes Semiconductor, warned that shortages could become a real chokepoint for manufacturing.
That chokepoint hits right where it hurts. The US government has been loudly pushing for more chip production on American soil, trying to attract giants like TSMC and boost domestic fabs. But even the most advanced chip plant is useless if it cannot get the special materials it needs. A fragile supply of yttrium can quietly undermine those big ambitions.
How Bad Could This Get And Is There A Way Out?
So does this mean your next GPU will cost double and your dream rig is doomed. Not necessarily, but it does mean there is real pressure building behind the scenes.
Estimates for yttrium stockpiles outside China range from about one month to as much as a year of supply, depending on who you ask. Some big names say they are still fine for now. Companies like Mitsubishi and Siemens report that their operations are currently stable. Siemens in particular says it is actively trying to diversify away from Chinese suppliers so it is not stuck if rules tighten further.
There is also movement on the production side. US based ReElement Technologies plans to produce around 200 to 400 tons of yttrium oxide per year starting in December. At the high end, that could cover most of the estimated 470 ton annual US demand. If that ramp up goes smoothly it could blunt a lot of the current price shock and reduce reliance on Chinese refining.
On top of that, trade politics are not set in stone. China could decide to relax controls. The US and China could add yttrium and other rare earth elements into future trade deals in a bigger way. A single policy shift from either government could ease the squeeze significantly.
There is still risk though. If the shortage drags on and prices stay high, chip makers could face slower production or higher costs. That kind of pressure can eventually leak down to consumers as pricier graphics cards, CPUs and devices or just fewer products on shelves at launch.
For now the yttrium story is mostly happening in boardrooms and fabs rather than in your local PC parts store. But it is a good reminder that the sleek gaming rig on your desk depends on a long chain of obscure materials with names that sound like alien metals. If any one of those supply lines gets kinked, the ripple effect can reach all the way to the price tag on your next upgrade.
Chip manufacturers around the world are hoping that China loosens its grip on yttrium or that new sources come online fast. If they do not, the silent little element you had never heard of might become the reason your future hardware is slower to arrive and more expensive when it does.
Original article and image: https://www.pcgamer.com/hardware/a-vital-rare-earth-element-youve-probably-never-heard-of-has-surged-in-price-by-nearly-1-500-percent-this-year-and-its-essential-for-global-chip-manufacturing/
